US merger to create the world’s largest advertising firm [Video]

WPP’S status as the world’s largest advertising firm is under threat after two US rivals agreed a multi-billion-euro mega-merger, writes Calum Muirhead.

New York-based Omnicom and Interpublic, the second and fourth largest ad agencies, have struck a €12bn deal to join forces in a move that will de-throne FTSE 100 member WPP.

The tie-up is likely to spark fears of job losses in the UK as both entities employ thousands of people across their various ad agencies and PR firms across Britain, and are planning to save €706m in costs through the merger.

Globally, Omnicom has over 75,000 staff while Interpublic employs more than 57,000.

Under the terms of the deal, Interpublic shareholders will receive 0.344 Omnicom shares for each share they hold in the business, giving them control of 39.4pc of the enlarged group.

Omnicom chief executive John Wrensaid: “Now is the perfect time to bring together our technologies, capabilities, …