- TBWA Worldwide is set to move into Japan by acquiring a majority stake in Japan's 16th largest advertising group, Nippo Corp.
TBWA, which is part of the Omnicom Group, will acquire a 70 percent stake in the agency for an undisclosed sum. Nippo Corp is affiliated with and handles Nissan Motor Co's Japanese account.
The Nissan connection is thought to be the basis for the deal. TBWA already handles Nissan in the US and the UK and the Japanese acquisition is likely to give it the Japanese account, according to Fred Meyer, TBWA Worldwide's chief financial officer.
"The investment will enable TBWA to pick up the advertising account for Nissan in Japan and other accounts. It will solidify that [Nissan] relationship. So far, TBWA has not done any advertising in Japan. The purpose is to have a position in Japan.," he said.
Nippo, which recorded about £20 million ($33 million) in commission and fee income in the year to March 31, also handles advertising for Apple Computer, Hitachi Ltd and Fuji Heavy Industries.