Proposed merger between WPP Group plc and Grey Global Group Inc
Outcome
Not Opposed
Date completed
23rd November 2004
Merger type
Horizontal
Guidelines thresholds
Below
Imports about 10%
Unknown
Market definition
The relevant markets were considered to be:
1. The national market for marketing communications services including advertising agency and related services; and
2. The national market for media buying services.
Competition analysis
The ACCC decided not to oppose the merger between WPP Group plc and Grey Global Group Inc on the grounds that:
1. Market concentration levels are not likely to exceed the Commission's thresholds;
2. Barriers to entry to the markets appear to be low;
3. The merged entity will be constrained from raising prices by the countervailing and bargaining power which advertisers and media companies possess; and
4. The market is characterised by strong competition between agencies, including agencies owned by a single parent group.
