Dentsu dropped 6.3 percent to 2,162 yen as investors judged its purchase of British marketing group Aegis for 3.2 billion pounds ($5 billion) as overpriced.
The Japanese marketing company said it aims to complement its own strong presence in Japan and Asia with Aegis' footprint in Europe, as well as its expertise in digital services.
Dentsu purchase of Aegis would create the largest advertising agency in Asia and would become a global rival to existing dominant agencies such as WPP , Publicis and Omnicom .
Dentsu’s takeover of the digital communications agency Aegis would create a “compelling combination” of two companies looking to expand globally, Jerry Buhlmann, CEO of Aegis Group told CNBC.
The deal will also increase Tokyo-based Dentsu’s presence in Europe as Aegis has established a strong digital foothold in the continent since it was founded in 1968. Buhlmann told CNBC’s “Squawk Box Europe” that the tie-up heralds the first communications group “born in the digital age”.
“The rationale’s really quite straight forward. These two groups have very complimentary geographies and this provides an industrial shareholder base for Aegis. It’s a great combination, it’s the first communications group born in the digital age .”
Page 1 of 2 | Next Page
