WPP ups presence in China through Grey acquisition

by Jacquie Bowser, Brand Republic 20-Jun-07, 14:10

LONDON - WPP-owned Grey Group has acquired a controlling stake in Star Echo, a marketing agency in China, for an undisclosed amount.

Grey Group has acquired 51% of the agency, which was founded in 2000, but the purchase is still subject to regulatory approval.

Star Echo employs 318 people, with offices in Beijing, Guangzhou and Shanghai. Its clients include P&G, Amway China, Dongfeng Nissan and Warner Brothers.

The agency's unaudited revenues for the year ended 31 December 2006 were RMB37.2m (£2.45m), with gross assets at the same date of RMB46.9m (£3.09m).

Earlier this week, another WPP agency Mediaedge:cia acquired 100% of the issued share capital of media agency MediaX in Austria.

This was followed yesterday by Group M, also owned by WPP, agreeing to acquire a majority stake in Interactive Television Private Limited (Interactive TV) -- an Indian marketing agency that specialises in cinema advertising and marketing in multiplexes, malls and shopping chains. Its clients include Maruti, Microsoft, Coca-Cola and Bharti Airtel.

WPP said the investments are part of a strategy to develop its networks in fast-growing markets across the world.