Dentsu: An Advertising Mega-Agency Is Born

The Japanese ad agency snags Britain’s Aegis to boost global reach
Has Andree shot and scored with British ad shop Aegis? Photograph by Roderick Aichinger for Bloomberg Businessweek

Advertising agency Dentsu’s bold $4.9 billion buyout of British media-buying firm Aegis Group is yet another reminder of the acquisitive mood among Japanese companies these days. A superstrong yen and stagnant domestic economy have prompted cash-rich companies to do $125 billion worth of cross-border deals since the start of 2011, according to data compiled by Bloomberg. The merger boomlet is certainly keeping investment bankers busy, though whether this dealmaking is doing much good for corporate bottom lines or shareholders is far from clear.

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