Acquirer: WPP Global; Target: Grey Global Group

Acquirer(s)

  • WPP Global

Target(s)

  • Grey Global Group

Summary

Proposed merger between WPP Group plc and Grey Global Group Inc

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.

Merger type

Horizontal

Guidelines thresholds

Below

Imports above 10%

Unknown

Initiation

Parties

ANZSIC code

7851