Publicis chairman Maurice Levy confirmed the deal today, just 48 hours after the group reported a strong set of full-year results, with net profits up 18% to €151m (£93m).
The deal also sees Publicis form a partnership with Japanese advertising giant Dentsu, which owns 20% of B|Com3. It will take a 15% stake in the merged company, which becomes the world's fourth-largest ad group, finally allowing it to overtake its Paris-based neighbour Havas.
The announcement will bring a welcome relief from the recession headache that the ad industry has been suffering over the past 12 months, as revenues declined as a result of the dotcom crash, slashed marketing budgets and the events of September 11.
The signs are that it may help mark a return to the sector by investors, as hopes are revived about further industry consolidation.
Cordiant Communications is expected to be among those most closely watched. Last year, there was speculation that the group might have merged with Publicis, but this was largely driven by their partnership in media-buying powerhouse Zenith Optimedia, which is 25% owned by Cordiant and 75% by Publicis.
Shares in Publicis were suspended on the Paris Bourse yesterday pending a stock market announcement. They resumed trading today, rising 4.9% to €37.23, as the market gave its approval to the deal.
Havas Advertising rose 9.8% to €9.94, Aegis Group was up 5.98% to 116.25p, WPP Group climbed 0.68% to 800p and Cordiant rose 4.76% to 79p at 3.30pm.
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