Brussels, 23/10/2001 (Agence Europe) - The European Commission has granted clearance to the acquisition of Tempus Plc by WPP Group in the sector of marketing communication services and media buying. WPP is an international communications services group operating in 102 countries worldwide. It provides a full range of communications services including advertising, media investment management (also known as media buying), information and consultancy, public relations and public affairs, branding and identity, healthcare and specialist communications. Tempus, on the other hand, is a marketing and media communications group headquartered in the United Kingdom. It makes the vast majority of its turnover through media buying services.
The Commission has noted two markets where the operation could pose problems: the markets for media buying services and marking communication services. In the advertising space sector, it noted that, after the move, the WPP market share would be between 15% and 25% in three EEA countries: Italy, the Netherlands and Sweden. The entity would nonetheless be confronted by competition from several agencies. In other countries, the market share would be less than 15%. For the wider market of marketing communications services, the merged entity will have market shares well below 15%, whether the scope of competition is EEA-wide or national. The Commission points out that this is the second time in two months that it has examined a proposed acquisition of Tempus. In September, it had authorised Havas to acquire Tempus (see EUROPE of 7 September, p.16). Nonetheless, Havas had withdrawn its offer before outbidding by WPP. We recall that WPP proposed 555 pence per share, that is 14 times more than its French competitor.