Havas/Snyder Deal: Size is very important to Havas in its quest for world supremacy

Havas Advertising’s massive dollars 2.1 billion share swap deal with Snyder shows that Renault isn’t the only French company to believe that size matters.

Havas Advertising’s massive dollars 2.1 billion share swap deal

with Snyder shows that Renault isn’t the only French company to believe

that size matters.



And the deal is no mean feat considering the group was only created in

1991.



Its biggest shareholder is Havas, which has a 20 per cent stake. Havas

is France’s largest media company, spanning book publishing to TV. It is

owned by the French conglomerate, Vivendi.



Havas established an advertising unit during the 30s which it

re-organised in 1973 to form Eurocom. In 1992 it merged this with the

rival group, RSCG, to form Euro RSCG Worldwide. In 1996 it changed its

name to Havas Advertising and restructured into four divisions.



The first is Euro RSCG Worldwide, Havas Advertising’s main brand. It is

headed by Bob Schmetterer, the chairman and chief executive, and is

established in 72 countries through 153 agencies and has risen to the

fifth largest advertising group worldwide. Its European agencies, which

include the Paris creative hotshops, Euro RSCG Works and Babinet Erra

Tong Cuong, and Euro RSCG Wnek Gosper in London, account for 53 per cent

of gross income. It has 13 offices in North America, including Messner

Vetere Berger McNamee Schmetterer in New York, which accounts for 37 per

cent, with clients such as Intel, MCI and Philips Electronics.



Campus is where Snyder’s Arnold Communications will sit, forming a

second worldwide creative advertising network to complement Euro RSCG.

Agencies included WCRS in London, headed by Robin Wight; the German

agency, Rempen & Partner, which became a Campus member in 1999; the

French agency, devarrieuxvillaret, and the Italian agency, Ata.



Diversified Agencies, the marketing services arm, aims to bring together

autonomous agencies. These include the UK’s Evans Hunt Scott, AIS and

MSF; France’s Enjoy Scher Lefarge, Communider and Al Dente, and Aniforms

Communications in the US.



The fourth division is Media Planning, set up to separate media from

advertising.



Havas Advertising is the principal shareholder with 45 per cent of the

shares.



Havas profile

1973

Havas reorganises its advertising operations to form Eurocom

1992

Eurocom merges with RSCG to form Euro RSCG Worldwide

1996

Euro RSCG becomes Havas Advertising and is split into four divisions

1997

Vivendi acquires 30% of Havas

1998

Vivendi buys the remaining 70% of Havas

1999

Havas buys Cendant and sells its outdoor operations to JCDecaux



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