The collapse of the proposed Omnicom-Publicis merger, a bravado effort to override cultural differences, executive egos and national tax law, does not come as a surprise. The venture had been displaying signs of distress for some time, with both sides admitting to difficulties.
The challenge of getting various tax authorities to agree to a complex and artificial structure – a Franco-US company incorporated in the Netherlands but tax resident in the UK – was one barrier. John Wren, Omnicom’s chief executive, warned investors last month of delays due to tax issues. Read more