French advertising agency conglomerates Publicis Groupe will buy U.S.-based agency Bcom3 Group, Inc for $3 billion in cash and stock in a move that will reportedly creates the fourth largest advertising agency in the world.
Publicis also announced the strengthening of a partnership with Japanese agency Dentsu Inc. that will allow its new clients to take advantage of Dentsu's local-market expertise. Dentsu will now own 15% of the newly merged agencies.
Under the merger agreement, Publicis headquarters will remain in Paris and will continue to be directed by a Conseil de Surveillance presided by Elisabeth Badinter and a Directoire presided by Maurice Lévy. He will continue as Publicis CEO and Roger A. Haupt, currently chairman/CEO of Bcom3, will become Publicis president/COO and will join the Directoire.
Bcom3 companies include such agencies as Leo Burnett, D'Arcy Masius Benton & Bowles, Manning Selvage & Lee, Bartle Bogel Hegarty, and the Starcom MediaVest media franchise.
