MAM
Carat revises downwards ad spend growth to 5% in 2012
MUMBAI: Media Communications specialist Carat, part of Aegis Media, has revised downwards the global ad spend due to economic stresses in Europe and the US.
In its new forecast, Carat has predicted global advertising expenditure to grow at five per cent in 2012, down from its earlier forecast of six per cent.
For 2013, Carat has downgraded the global ad growth to 5.3 per cent from 5.8 per cent. The company had made its previous forecast in March 2012.
These latest forecasts are consistent with the view of the two-speed world whereby we continue to see significant growth from the faster-growing regions of the world versus the lower levels of growth in the developed economies of the US and Western Europe, with Western Europe being impacted by low or negative growth, particularly in Southern Europe.
The data also shows that global investment in Digital Advertising will overtake investment in Newspapers sooner than expected, in 2012 rather than 2013, as audiences continue to move online.
By media, digital remains the driving force in the market in terms of growth, continuing to outstrip growth in other verticals, followed by Out-of-Home (OOH) and television.
Year on year percentage growth at current prices
(Figures in brackets show the previous forecasts from March 2012)
|
2012
|
2013
|
|
|
Global
|
5.0 (6.0)
|
5.3 (5.8)
|
|---|---|---|
|
North America
|
4.9 (5.0)
|
5.3 (4.3)
|
|
USA
|
4.9 (4.9)
|
5.3 (4.2)
|
|
Canada
|
3.3 (5.4)
|
4.3 (6.1)
|
|
Western Europe
|
0.2 (1.5)
|
1.1 (2.2)
|
|
UK
|
2.8 (4.0)
|
2.8 (3.4)
|
|
Germany
|
1.1 (1.2)
|
1.5 (2.0)
|
|
France
|
0.5 (1.5)
|
1.9 (1.9)
|
|
Italy
|
-5.0 (1.2)
|
-0.4 (1.0)
|
|
Spain
|
-8.0 (-4.7)
|
-5.4 (1.6)
|
|
C&EE
|
7.9 (9.5)
|
8.8 (9.0)
|
|
Russia
|
14.1 (15.2)
|
13.1 (12.8)
|
|
Asia Pacific
|
6.8 (8.7)
|
6.5 (8.6)
|
|
Australia
|
1.0 (2.9)
|
2.0 (2.7)
|
|
China
|
11.0 (14.7)
|
9.8 (14.6)
|
|
Japan
|
2.9 (3.0)
|
2.8 (0.7)
|
|
Latin America
|
12.0 (10.7)
|
9.0 (8.2)
|
|
Brazil
|
12.8 (10.5)
|
9.4 (8.0)
|
Commenting on the Carat forecasts Aegis Group CEO Jerry Buhlmann said, “Carat‘s latest ad spend forecasts show the continuation of two fundamental trends which have changed the advertising industry. Firstly, Digital Media continues to grow materially ahead of all the other media and has overtaken newspapers – a year earlier than expected – to become the second largest medium in terms of advertising spend, behind TV. The trend of audiences moving online shows no sign of slowing down, as demand for online content and the proliferation of internet and mobile access increases. In parallel to this, the trend of the two-speed world continues, with the rates of growth in the emerging economies remaining well ahead of the US and Western Europe.
“With these two themes – globalisation and convergence – the media landscape is becoming increasingly complex. In addition, it is creating exciting new growth opportunities for the global advertisers and changing the demands they place on the advertising groups. In these changing times, for those that have the most focused and specialist offerings, along with the global reach and scale to provide innovative integrated solutions that deliver real results, there are exciting times ahead.”
Brands
Sun Pharma to acquire Organon in $11.75 billion deal at $14 per share
Acquisition to create $12.4 billion pharma giant with global scale and biosimilars push
MUMBAI: Sun Pharmaceutical Industries Limited has signed a definitive agreement to acquire Organon & Co. in an all-cash deal valued at $11.75 billion, marking one of the largest cross-border pharma acquisitions by an Indian firm.
Under the terms of the agreement, Organon shareholders will receive $14.00 per share in cash, with Sun Pharma set to acquire 100 per cent of the company’s outstanding shares. The transaction, approved by the boards of both companies, is expected to close in early 2027, subject to regulatory approvals and shareholder consent.
The deal significantly expands Sun Pharma’s global footprint and strengthens its position across women’s health, biosimilars, and branded generics. The combined entity is projected to generate revenues of around $12.4 billion, placing it among the top 25 pharmaceutical companies globally.
Organon, which was spun off from Merck in 2021, brings a portfolio of over 70 products spanning women’s health and general medicines, with operations across more than 140 countries. Its established presence in key markets such as the US, Europe, and China complements Sun Pharma’s existing strengths and growth ambitions.
Sun Pharmaceutical Industries Limited executive chairman Dilip Shanghvi said, “This transaction represents a significant opportunity for Sun Pharma to build on its vision of reaching people and touching lives. Organon’s portfolio, capabilities and global reach are highly complementary to our own.”
Sun Pharmaceutical Industries Limited managing director Kirti Ganorkar added, “This transaction is a logical next step in strengthening Sun Pharma’s global business. Together, we will become a partner of choice for acquiring and launching new products.”
From Organon’s side, Organon & Co. executive chair Carrie Cox noted, “This all-cash transaction offers compelling and immediate value to Organon stockholders, while positioning the business for continued growth under Sun Pharma.”
Strategically, the acquisition gives Sun Pharma entry into the global biosimilars space as a top 10 player and strengthens its innovative medicines portfolio, which is expected to contribute around 27 per cent of combined revenues. The deal is also expected to nearly double EBITDA and cash flow, supporting long-term deleveraging and investment capacity.
Sun Pharma plans to fund the acquisition through a mix of internal accruals and committed financing from global banks, while maintaining focus on disciplined integration and operational continuity post-merger.
If completed as planned, the deal signals a clear shift in India’s pharmaceutical ambitions, from scale at home to leadership on the global stage, with Sun Pharma positioning itself as a more diversified and innovation-led healthcare powerhouse.
