As the ink dries on the global deal creating the world’s largest marketing communications group, the industry’s gaze has shifted to a complex chessboard: the Middle East. While the global takeover is a fait accompli, consolidating the strongest agencies into a single mammoth entity, the question of how this integration unfolds in MENA remains the year’s biggest cliffhanger.
In New York, the path is clear: BBDO, TBWA, and McCann will stand as the core creative pillars, while DDB, FCB, and MullenLowe are set for integration. On the media front, an unparalleled powerhouse is forming, combining OMD, PHD, and Hearts & Science with UM, Mediahub, and Initiative.
But in Beirut, Doha, Dubai and Riyadh, the situation is unique. The “Middle East anomaly”—specifically the ownership structure of the MCN Group – a leading advertising and marketing communications agency group in MENAT – makes this region the wildest card in the global deck.
Communicate lays out the options:
The Multi-Million Dollar Question: The MCN Minority Stake
Unlike other regions where IPG operates wholly-owned subsidiaries, filings confirm that IPG holds only a 51% majority stake in the Middle East Communications Network (MCN). The remaining 49% is held by Akram Miknas and family.
This is not just an operational detail; it is an important financial hurdle. Communicate contacted MCN that confirmed that for now operation remains the same. This means no change in structure, leadership or teams.
Based on industry insights, Communicate estimates IPG’s regional revenue at approximately $390 million, with EBITDA margins estimated over 20%. This places regional profit between $76 million and $80 million.
For Omnicom to achieve full control, they must buy out the Miknas family. Based on current agency valuation multiples (typically 6x to 8x EBITDA for high-performing regional assets), Communicate estimates that the value of the Miknas stake is between $220 million and $240 million.
The negotiation over this number will define the speed of the merger. Communicate spoke with industry heavyweights, and three scenarios emerged.
Scenario 1: The Chinese Wall
If a valuation agreement cannot be reached, we could see a “cold war” scenario: a strict Chinese wall maintained between existing Omnicom entities and the MCN group. This is the least likely outcome, but the most dangerous. With Omnicom now the undisputed global heavyweight, multinational clients would naturally gravitate toward the wholly-owned entity, slowly eroding the value of the minority-held MCN assets over time. However, given Akram Miknas’s legendary pragmatism and Omnicom’s desire to unlock immediate synergies, a prolonged standoff benefits no one.
Scenario 2: The Slow Roll
This scenario envisions a gradual unwinding of operations over 12 to 16 months. Integration would commence by the end of Q2 2026, allowing for a measured absorption of agencies by Q1 2027. This minimizes client disruption but delays the financial efficiencies the merger promises.
Scenario 3: The Swift Strike (The Rumor Mill’s Favorite)
Industry whispers suggest that negotiations are already advanced and could conclude within weeks. In this scenario, MENA would move in lockstep with global operations, with agencies fully absorbed by summer 2026. This “rip the bandage off” approach would immediately unleash the group’s new firepower.
The Leadership Shuffle: Who Rules the New Kingdom?
If the merger proceeds swiftly, the consolidation of leadership will be brutal and highly scrutinized.
The Creative Crown
With FCB expected to fold into BBDO and MullenLowe into TBWA, the leadership spotlight falls on three veterans: Dani Richa (BBDO), Reda Raad (TBWA), and Tarek Miknas (FP7/McCann). While McCann will likely remain a distinct pillar within Omnicom Advertising, the industry money is currently split between Raad and Richa to take the wider reins of the creative portfolio.
The Media Monolith
The media consolidation creates an entity with staggering market share. OMD, PHD, and Hearts & Science will be joined by UM and Initiative. The current Omnicom Media Group leadership, headed by Elda Choucair, is in a formidable position.
The integration will likely see a reshuffling of brand leadership, with a bench of talent including Saleh Ghazal (OMD), Christian Fedorczuk (PHD), Joe Nicolas (UM), Lara Arbib (Initiative), and Rasha Rteil (Hearts & Science).
The PR Powerhouse
The PR equation is equally complex. The new Omnicom Public Relations group will amalgamate FleishmanHillard, Ketchum, Porter Novelli, and Golin with IPG’s jewel, Weber Shandwick.
Sources indicate that the recent economic slowdown in Saudi Arabia has impacted several agencies, yet Weber Shandwick has remained relatively insulated. This resilience places Ziad Hasbani as a strong contender for leadership, competing with established figures like Fouad Boumansour, Ashraf Shakah, and Stephen Worsley.
The Wild Card: The “Czar” of MENA
The ultimate question remains: Will Omnicom appoint a single Group CEO to oversee this entire regional empire?
In India, the Omnicom–IPG integration follows a more federated model in which major agencies and business lines largely retain their own entities and brand identities, coordinated under an India‑level leadership layer for creative and media rather than a single fully unified P&L. In Australia, Omnicom is pushing a more consolidated “one business” model, merging brands into fewer national platforms and putting a single CEO and top team clearly in charge of all assets, with a unified culture and tighter operational and financial integration across creative, media and specialty units. Which of the two models will be applied to the Mena is the current question that will depend on the speed of the deal with MCN.
A New Tomorrow
The formation of this juggernaut s not just an administrative merger; it is a market-altering event. As AI continues to rewrite the rules of marketing efficiency, the consolidation of Omnicom and IPG will create a singular entity with unprecedented leverage.
For suppliers and media vendors, the pressure will be immense. For clients, the promise is power and synergy. And for the agencies themselves, the era of the “big fish” is over. We are now in the era of the Whale.
