JC Decaux to buy APN Outdoor for $1.119 billion
The local out-of-home advertising industry has consolidated even further, with international giant JC Decaux agreeing to buy Australia’s second-biggest player in the space, APN Outdoor for $6.70 per share, which values its equity at $1.119 billion.
JC Decaux had originally bid $1.1 billion for the company last week, but negotiations stalled with APN Outdoor believing the price was too low. JC Decaux also made its offer contingent on APN Outdoor not pursuing its purchase of its main rival in the street furniture business, Adshel, which ultimately sold to Ooh Media for $570 million yesterday.
The concurrent deals, which see Ooh Media and Adshel come together, along with JC Decaux and APN Outdoor consolidating, mean the landscape of Australia’s outdoor industry has significantly changed.
And now we have an OOH duopoly…
Some media planners will say this is easier for planning, however media buyers/negotiators will be forced into share buys and filling space rather than targeting key locations and whats right for the brand.
The industry needs to move forward but not at the advertiser’s expense. Make sure you know what you paid for sites in 2017/18.
I’d just love to see government regulation that bans out of home advertising, ruling it as visual pollution, just like they did in Sao Paulo. Would be nice to send a message to global mega-corporations to say buying up competition is NOT OKAY.