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Logo of Tihama Advertising and Public Relations Co.
Tihama Advertising and Public Relations Co. agreed with WPP plc to the merger of the J Walter Thompson MENA, an associate of Tihama, with Wunderman MENA, the firm said in a statement to Tadawul today, July 1.
The merger will lead to the creation of Wunderman Thompson MENA EC, a Bahraini-based holding group, with over 800 employees.
The decision follows the 2018 global merger of J. Walter Thompson and Wunderman to create Wunderman Thompson.
Along with operations in Saudi Arabia, Wunderman Thompson MENA will have offices in Dubai, Egypt, Kuwait, Lebanon, Morocco and Tunisia.
Tihama will hold 25% of Wunderman Thompson MENA on completion of the transfer of legal ownerships and other required regulatory approvals.
Any financial impact arising from the transaction will be booked on completion, based on the assets and liabilities at that date. Any potential impact cannot be estimated at this time, the statement added.
The agreement is subject to completion of the transfer of legal ownerships and all other required regulatory approvals before Dec. 31, 2021.
There are no related parties in the transaction.
In a separate statement, Tihama announced that it agreed on June 30 with WPP plc to create a new joint venture called “ICG Saudi Arabia”.
ICG Saudi Arabia will provide a range of communications and media services in Saudi Arabia through client-facing agency brands.
WPP will own 70% of the joint venture, while Tihama will own the remaining 30%.
The initial operations of ICG will serve clients through the following brands: Ogilvy, MediaCom, Mindshare, Wavemaker and Grey. More brands will be added as new opportunities arise, the statement said.
ICG Saudi Arabia will provide a new vehicle for WPP to bring more of its brands into Saudi Arabia, a key market in the MENA region.
Post-completion, Tihama will hold 30% of ICG Saudi Arabia.
Tihama’s share of the results of the performance of ICG Saudi Arabia will be reported in its financials, as a share of results of an associate company.
Any financial impact arising from the transaction will be booked on completion, based on the assets and liabilities at that date. Any potential impact cannot be estimated at this time, the statement added.
The agreement is subject to completion of the transfer of legal ownerships and all other required regulatory approvals before Dec. 31, 2021.
There are no related parties in the transaction.
Marketing and communication is undergoing rapid transformation as part of Vision 2030 strategy.
WPP and Tihama will be able to contribute towards the success of Vision 2030 using knowledge transfer to help develop and strengthen local talent. The partnership will also contribute to empowering Saudi youth by creating new jobs that respond to the needs of the domestic market by attracting young people in the areas of creative transformation, customer experience, marketing, technology, and commerce.
WPP is a creative transformation company that uses the power of creativity to build better future. It serves a wide range of global and local clients through its group in the Middle East and North Africa and has 100,000 employees worldwide with $17.9 billion in revenue.
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