Leading global advertising and marketing communications services company, Omnicom Group Inc, said on Monday that it has reached an agreement with Anil Ambani-led ADAG to buy a 51 per cent stake in the latter's ad agency, Mudra.
Omnicon owns 10 per cent stake in Mudra since 1993. In a statement to London-based Financial Times, the $3.38-billion Omnicom said that the formation of an integrated marketing communications group with Mudra will help it expand its service capabilities and presence in India, Asia's third largest economy.
Speaking to FT, Omnicon CEO John Wren said that the company is 'paying fair value for the stake' to ADAG, but did not specify the amount.
Omnicom has a 100 per cent shareholding in ad agency TBWA India. It holds a majority stake in ad agency BBDO India and 49.9 per cent of BBDO India.
Omnicom also owns OMD -- a media buying agency --
No official comments have been released by either of the companies yet, but sources say that the deal was almost done.
The deal, reported FT, will give Omnicom, a 'new foothold in one of the world's largest emerging consumer markets'.
With the addition of Mudra, Omnicon will become one of the top three holding companies in India.
Founded in 1980 and based in Mumbai, Mudra has more than 1,100 employees.
ADAG chief Anil Ambani is likely to join the Omnicom global advisory committee post the buyout.
The Mudra Group clients include Aircel, Bajaj Allianz Insurance, Castrol, Dabur, Disney, Emirates, Electrolux, Future Group, Godrej, Hindustan Unilever, ITC, Jet Airways, Larsen & Toubro, LIC, PepsiCo, Reliance ADAG, Samsung India, Volkswagen, among others.