Dentsu Inc to buy Aegis Group Plc for 3.16 bn pounds

The two companies have a significant presence in India. The deal would create a new global player to compete against rivals including Omnicom, Publicis and WPP.

In a statement Dentsu said it would pay 240 pence for each Aegis share, a premium of 48 per cent on yesterday's closing price of 162.2 pence.

As part of the deal, Dentsu, which was founded in 1901, said it has acquired 15 per cent stake in Aegis and would purchase 5 per cent more from companies promoted by Vincent Bollore -- the UK firm's largest shareholder.

"Dentsu and Aegis will be the market leader in the Asia-Pacific region, enjoying a strong presence across Europe and the fastest growing agency network in the US," Dentsu President and Chief Executive Tadashi Ishii said.

"We have huge ambitions for a truly client-focused global communication network built in the digital age," Ishii added.

Commenting on the deal, Aegis said, "the transaction is a friendly acquisition and the directors of Aegis intend to recommend it unanimously to shareholders."

With 12,000 employees, Aegis has presence in 80 countries including India and Dentsu has reach in 29 countries with 21,649 employees.