With 86% of LBi International’s shares either already purchased or subject to irrevocable undertakings, it is hard to envisage any circumstances that would prevent Publicis concluding its takeover bid next January – provided the regulators don’t intervene.
Posts Tagged: global groups
Publicis Groupe’s ability to continue building revenues at a seemingly faster rate than its global competitors – reflected in its third quarter results announced today – may well have been helped by favourable currency movements – not least the decline in the euro – and aggressive investment in digital acquisitions, but the fact remains that the growth is real enough.
Today’s report that publicly listed marketing groups around the world enjoyed increasing revenues and profits last year comes as something of a surprise amidst the all-pervading economic gloom.
But perhaps it is no more than confirmation that customers take shelter with strong suppliers in times of financial stress and, by implication, regard publicly listed groups as being stronger than others.
Dentsu’s planned takeover of Aegis Group is what in Yes Minister parlance might be described as a “brave decision”.
Dentsu’s track record has been one of solid success in providing traditional marketing services in its home territory of Japan– leaving aside the Tsunami and the economic recession – but of less success when it has embarked on sizeable acquisitions outside that comfort zone.
With AKQA’s shareholders extracting a juicy $540 million from WPP, it’s hardly surprising that other would-be acquirers are swarming round the only other obvious large candidate likely to be for sale – LBi International – like bees round a honeypot.
We little Englanders may not like to admit it, but the evidence suggests that Publicis Groupe is growing faster than any of the other “Big Five” global groups. It would have been less irritating if the company’s 12.9% growth in revenue claimed for the first quarter of 2012 had been a one-off, but that is not so.
With a track record of losses like those shown in the chart below, one might expect the management of Canada’s MDC Partners to simply throw in the towel and admit defeat. At the very least one would be expecting more uproar from shareholders and some pretty tough talking with banks.
When Publicis Groupe announced the purchase of Pixelpark last week, valuing it at €30m, it was just the latest in a long line of digital acquisitions that have transformed the profile of the French group’s business over the last decade.
There are hints that a mentality of “If it’s digital, we’ll buy it” is beginning to take hold at Dentsu as it strives to catch up in this key strategic component of the marketing mix.
For the major global groups like Publicis and Omnicom it must be very frustrating to see revenues and profits fluctuating so wildly as a consequence of foreign currency exchange rate movements.