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Publicis, Omnicom merger threatened by tax reasons
Future Leaders Group consider impossible to predict the timing of the merger.
The merger between Publicis and Omnicom aurat place? Upon publication of financial results of Omnicom, for the first quarter of 2014, revealing an operating profit 389.7 million, up 3%, the words of John Wren, the general manager of the second largest communications group, were likely to sow some trouble: "It is impossible to predict the timing of completion of the merger with Publicis," said he said during a conference call, referring to the "complexity" of the operation to justify the delay.
Even more than the expectation of the green light from the Chinese competition authorities - the only ones missing - is the tax records that would block a priority, the completion of the merger of two global advertising giants. During the announcement, on 28 July 2013, the project, John Wren, and Maurice Lévy, CEO of Publicis had indeed indicated that the headquarters of the future together would be established in the Netherlands.
Exclusive tax residence
But according to some competitors, the weakness of the "commercial activity" and the assets of the Dutch company Publicis Groupe Investments BV, holding all subsidiaries outside France, have caused tensions, there are three weeks with the tax authorities Batavian complicating the finalization of the case. The implementation in the Netherlands of the headquarters future together was thus denied. This is the reason why the two groups decided to turn now to the UK in order to obtain "an exclusive residence for tax purposes." A version that belies Marie-Gabrielle Heilbronner, Senior Vice President, General Secretary of Publicis Groupe, bridgehead on this sensitive. "Folder we got at the beginning of the merger announcement, the downstream Batavian tax authorities to implement our new headquarters in the Netherlands merged group, provided that the operational headquarters remain in Paris and New York. In agreement with Omnicom, it was desired to UK tax residence of the new entity. That is why we agreed in our agreements to achieve our common best efforts to obtain this tax residence. Publicis, the important thing is that our first taxable base in France remains unchanged. The United Kingdom has not yet given its formal opinion, but it is on track. "
But much less nuanced about John Wren yesterday threw disorder. "Against all odds, we were not able at this stage to obtain the necessary approvals to establish the tax status of the future group. If we can not obtain such approvals, it could jeopardize the probability of satisfying the conditions for the completion of our transaction. "The threat is clear.
Already last Thursday during a conference call for financial analysts and reported by the U.S. Weekly "Advertising Age" Maurice Lévy joked: "Go back to society" standalone "not a problem for us. Life is good for Publicis whatever happens, with or without Omnicom, "noting, however, confidence in the conclusion of the" deal "