POG Merger Clears U.S. Regulatory Hurdle
The Omnicom-Publicis merger has passed a major regulatory hurdle -- the companies confirmed today that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act has expired, meaning that the U.S. government will not challenge the merger.
The companies also announced the receipt of approvals from regulatory authorities in Canada, India, and Turkey. These clearances follow previously disclosed approvals in South Africa and South Korea.
The expiration of the Hart-Scott review period in the U.S. and the approvals received in other jurisdictions satisfy some of the conditions necessary for the transaction to close. The merger is also subject to additional global regulatory approvals and approval by shareholders of both companies.
The deal, announced in July, is also the subject of a class-action lawsuit by a number of Omnicom shareholders who filed suit in New York, arguing that they are not being compensated adequately.
Several lawsuits have been consolidated into one case and this week the New York State Supreme Court ruled that an amended consolidated complaint can be filed three weeks after Omnicom and Publicis file a preliminary proxy with the Securities and Exchange Commission.
The companies said recently that they still hope to close the merger in early 2014.