Omnicom (OMC) Moves Closer to IPG Deal, Analysts Remain Optimistic

Omnicom Group Inc. (NYSE:OMC) is one of the deep value stocks to buy according to analysts. On August 11, Omnicom took another step forward in its planned acquisition of Interpublic Group (IPG) by launching exchange offers for all outstanding IPG senior notes. The company is offering up to $2.95 billion in a mix of new notes and cash, while also seeking consent to amend the indentures tied to these securities. The intent is to simplify financial structures ahead of the merger.

Regulatory approvals are largely in place. The U.S. Federal Trade Commission cleared the deal in late June following its antitrust review, and competition regulators in Australia and the U.K. followed with their approvals in July and early August. These clearances remove key hurdles, leaving Omnicom well-positioned to close the acquisition.

The deal was originally announced in December 2024 and it aims to combine two of the largest names in advertising and marketing. Management expects the deal to broaden service capabilities across media, CRM, precision marketing, data, and digital commerce. Moreover, cost savings of roughly $750 million annually are projected once integration is complete, strengthening the financial case for the transaction.

Regarding consensus, around two-thirds of the analysts have a favourable opinion about the company. Both JP Morgan and Citi had reiterated a Buy rating on the stock around July 10, with price targets of $96 and $103, respectively.

Omnicom Group Inc. (NYSE:OMC) is a holding company that, together with its subsidiaries, offers advertising, marketing, sales, and corporate communications services.

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Disclosure: None. This article is originally published at Insider Monkey.