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The major street furniture company JC Decaux is in negotiations that could see it become the world's largest outdoor advertising business. A JC Decaux outdoor advertisement in Barcelona Photo: Alex Castella The company, which has operated in the UK since 1983, is in talks to take over the News Outdoor Group from the global media company News Corporation, chaired by Rupert Murdoch. Takeover of its Russian rival, News Outdoor Group, in a cash and shares deal which could cost an estimated $1.5bn, would leave JC Decaux as the clear market leader ahead of its main rival Clear Channel Outdoor. News Outdoor sells outdoor advertising in Russia, Poland and other East European countries, as well as Southeast Asia, and has been on the market since last year. News Corporation is reported to be seeking a 10% share in JC Decaux shares if the sale goes ahead. The French company already has a 40% holding in BigBoard, a smaller advertising business in Russia and Ukraine. Negotiations on the takeover follow recent raids on News Outdoor headquarters in Moscow, which are said to be linked to inquiries into illegal discounts on billboard advertising. JC Decaux was founded in 1964 and has grown into a major advertising company by developing the concept of funding public facilities, such as bus shelters and toilets, through advertising. It began with a contract to supply a single bus shelter which displayed advertising in Lyon. Since then it has expanded steadily as the formula became popular among local authorities throughout Europe. The company is currently the world's second largest outdoor advertising company promoting products through a range of street furniture and billboards. The company currently employs more than 8,900 people and has street furniture in 3,4000 cities worldwide, advertising in 145 airports and some 386,000 advertising panels with 300 transport bus, train and metro contracts. Last year it returned profits of $308m on a turnover of $2.9bn.

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BUSINESS

JC Decaux poised for outdoor ads top spot

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