Four firms control nearly all of the $660 million industry in Australia, where digital ad boards are delivering double-digit sales growth The takeover is subject to approval by regulators on both sides of the Tasman Sea, APN shareholders and Australia’s Foreign Investment Review Board SYDNEY: Australian billboard owner APN Outdoor Group agreed to a sweetened A$1.12 billion ($830 million) takeover from France’s JCDecaux on Tuesday, sealing Australia’s biggest deal in the sector where surging revenue has driven a dealmaking rush. Four firms control nearly all of the $660 million industry in Australia, where digital ad boards are delivering double-digit sales growth. And given the strict civic rules capping billboard supply, companies are opening their wallets to secure market share. “With a good billboard campaign, you can probably reach about 60 percent of the population in Australia, which you probably can’t do with any other medium,” said Ivor Ries, senior analyst at stockbroker Morgans. “I think (JCDecaux) will do very well.” The family-controlled French advertising giant, whose initial offer of last week received a tepid response from APN, lifted it by A$30 million, or a little less than 3 percent, to seal the deal. The combined entity would become the biggest outdoor ad firm in Australia, a nation of 23 million. “The JCDecaux scheme is an attractive, all-cash transaction,” APN Chairman Doug Flynn said in statement where he recommended the deal as “compelling” for shareholders. JCDecaux already owns street furniture in Australia and APN’s acceptance of its offer comes a day after the Australian company lost out to larger rival oOh!media in a bidding war for bus shelter firm Adshel, a division of No.4 player HT&E. oOh!media and APN rank first and second, respectively, in the billboards and outdoor advertising market in Australia, according to a February report from research firm IBISWorld. JCDecaux is third and HT&E ranks fourth. APN shares, which have been lifted to a near two-year high thanks to the French suitor, rose half a percent on Tuesday in a falling broader market. At A$6.43 they are still below the A$6.70 offer price as traders keep a wary eye on the competition regulator and price in an Australian 30 cents-per-share dividend APN plans to pay before the deal is done. The deal was announced after market in Paris where JCDecaux is listed. The cashed-up French firm had been scouring the globe for possible deals before settling on Australia, with co-chief executive Jean-Charles Decaux in March mulling buying rivals in the United States. His brother, Jean-François Decaux, also co-chief executive, said on Tuesday that APN, which owns 125 billboard sites across Australia and New Zealand, is “very complementary to our existing street furniture assets.” Their move comes as the sector flourishes. As eyeballs and advertising dollars ebb from other traditional media players such as newspapers and television channels, Australia’s outdoor market grew by 6 percent last year and revenue is up 10 percent in 2018 so far, according to Morgan Stanley. “We’re positive on the sector — there’s structural growth and the takeover bid is below the previous peak cycle multiple, so it is a bargain buy in relative terms,” said Mathan Somasundaram, portfolio strategist at stockbroker Blue Ocean Equities. The takeover is subject to approval by regulators on both sides of the Tasman Sea, APN shareholders and Australia’s Foreign Investment Review Board. The Australian Competition and Consumer Commission, which last year blocked APN from buying oOh!media on competition grounds, said by email it planned to scrutinize both the takeover by JCDecaux and the Adshel deal.