Dentsu’s takeover of the digital communications agency Aegis would create a “compelling combination” of two companies looking to expand globally, Jerry Buhlmann, CEO of Aegis Group told CNBC.
Japanese advertising firm Dentsu has agreed to buy Aegis, the British marketing group, for 3.2 billion pounds ($5 billion) in a deal that would create the largest advertising agency in Asia and would become a global rival to existing dominant agencies such as WPP , Publicis and Omnicom .
The deal will also increase Tokyo-based Dentsu’s presence in Europe as Aegis has established a strong digital foothold in the continent since it was founded in 1968. Buhlmann told CNBC’s “Squawk Box Europe” that the tie-up heralds the first communications group “born in the digital age”.
“The rationale’s really quite straight forward. These two groups have very complimentary geographies and this provides an industrial shareholder base for Aegis. It’s a great combination, it’s the first communications group born in the digital age .”
After agreeing terms to pay 240 pence a share for Aegis — 48 percent higher than Wednesday’s closing price — markets reacted with the share price nearing the offer mark at 236 pence.Page 1 of 3 | Next Page