UK's CMA: Plans to consider a second category of actions to address more complex issues over a longer period

UK's CMA: Plans to consider a second category of actions to address more complex issues over a longer period

The UK’s Competition and Markets Authority (CMA) has revealed plans to introduce a second category of actions to address more complex issues over a longer period. This announcement comes as the CMA continues its investigation into the proposed $13.25 billion merger between advertising giants Omnicom Group and The Interpublic Group of Companies (IPG). The merger, announced on December 8, 2024, aims to create the world’s largest advertising agency, combining the revenues of both companies to exceed $25 billion.

The CMA’s Phase 1 investigation, launched on June 16, 2025, is examining whether the deal could lead to a “substantial lessening of competition” in the UK’s advertising, media buying, and marketing services markets [1]. The regulator is currently assessing whether the merger constitutes a “relevant merger situation” under the Enterprise Act 2002, focusing on potential market dominance in media buying, creative services, and data-driven marketing. A Phase 1 decision is due by August 13, 2025, which will determine if a deeper Phase 2 investigation is needed.

The CMA’s decision to consider a second category of actions highlights its commitment to ensuring the merger does not negatively impact competition in the UK. This approach allows the regulator to address more complex issues over a longer period, ensuring a thorough and comprehensive evaluation of the deal’s implications. The regulator has already received stakeholder input on the deal’s competitive impact during an initial call for comments from May 7 to May 21, 2025.

The merger has already cleared regulatory hurdles in six of 18 required jurisdictions, including China, India, and Brazil, but faces scrutiny in the UK, US, and Australia. The Australian Competition & Consumer Commission has set a review deadline of July 24, 2025, while the US Federal Trade Commission has requested additional information ahead of a shareholder vote. The merger is expected to close in the second half of 2025 pending approvals.

The UK’s CMA has previously cleared GXO Logistics’ acquisition of Wincanton, contingent on the divestment of a select few UK grocery contracts. GXO Logistics has raised its full-year 2025 guidance, projecting higher organic revenue growth, adjusted EBITDA, and EPS [2]. The CMA’s approach to complex mergers demonstrates its proactive stance in maintaining competitive markets and addressing the evolving landscape of corporate acquisitions.

References:
[1] https://bestmediainfo.com/mediainfo/advertising/uk-regulator-launches-probe-into-1325-billion-omnicom-ipg-merger-9372859
[2] https://www.gurufocus.com/news/2935844/gxo-announces-completion-of-uk-regulatory-review-of-wincanton-acquisition-and-raises-fullyear-2025-guidance-gxo-stock-news