campaignlive.co.uk, Friday, 31 July 1998 12:00AM
- WPP is to form a strategic alliance with the soon to merge Japanese advertising agencies Asatsu and Dai-Ichi Kikaku.
The agreement will see WPP take a 20 per cent stake in the newly merged venture and the Japanese agency taking a reciprocal stake in WPP.
The two work together to provide services to Japanese clients worldwide and to non-Japanese clients in Japan.
For WPP, the alliance continues its strategy of strengthening its position in key markets. It follows similar moves in France and most recently Australia, which along with Japan were markets where WPP was seen as strategically weak.
The merger of Asatsu and Dai-Ichi Kikaku, which was announced yesterday and is due to take place on January 1, will create Japan's third largest advertising agency behind Dentsu and Hakuhodo. It will have combined billings of $3.2 billion.
The new agency, which will keep the Asatsu name, will be headed by Asatsu President Tsutomu Takeda
According to Takeda Reuters report. "The advertising industry is entering an era of mega-competition worldwide. Through the planned merger and tie-up with WPP group, we aim to ensure business expansion."
This article was first published on campaignlive.co.uk