Ogilvy & Mather has resigned the £10 million pan-European Hoover account in order to secure the Merloni-owned Indesit business across Europe.
The new account, which was pitched in Milan, will be run from O&M's Italian office.
Merloni, which also owns the Ariston brand, came close to centralising the pan-European accounts for both the Ariston and Indesit brands into Leo Burnett before Christmas. However, this week's news will mean Leo Burnett only handles the Ariston brand.
D'Arcy, which handled Indesit across Europe, is the principal loser in the deal. That brand spends about £3 million a year in the UK. TBWA GGT Simons Palmer will lose the £1.5 million Ariston account in the UK.
Merloni plans to up its spend for Indesit in the UK this year to £4 million. It has previously run high-profile campaigns such as "Why Pay More", which was developed by HHCL & Partners.
It is not yet known what Hoover will do with its European account. The company handed its $25 million US account to FCB in November last year following a pitch against J Walter Thompson and Leo Burnett.
O&M sister agency, Conquest, handles Hoover-owned brands in Europe, and it is expected that parent company WPP will try to centralise O&M's former Hoover business into Conquest.
O&M won the European Hoover account three years ago after a closely-run pitch against JWT. The agency's most recent UK work for Hoover has been the launch for the £5 million Hoover Vortex cleaner, which broke last June.