STW And WPP Merger Officially Gets Green Light
Marketing communications network STW will officially merge with the Australian and New Zealand businesses of WPP following STW shareholder approval at an Extraordinary General Meeting held today.
STW shareholders voted in favour of all resolutions associated with the transaction, which will see WPP become the majority shareholder of STW, and STW become the primary vehicle for WPP in Australia and New Zealand.
The combined entity will be known as WPP AUNZ, and be the largest communications services parent company in the region with 90+ businesses, more than 5,500 people and combined revenues of more than A$850 million2. WPP will have a majority shareholding in WPP AUNZ of 61.5 per cent
The merger is expected to deliver substantial benefits for clients, employees and shareholders.
Key features of the merger include:
- merger accelerates WPP AUNZ’s strategy of delivering 100 per cent of its clients’ customer experience budgets
- significant increase in the scale of the combined entity’s operations with WPP AUNZ generating revenues in excess of A$850 million
- a diversified and strengthened portfolio of companies through the combination of complementary businesses across all key marketing and communication services disciplines
- an improved offering to clients through local market knowledge and access to WPP’s global reach, insight, tools and proprietary offerings in data and content
- strong local management oversight to drive efficiencies and collaboration
- increased career opportunities for the 5,500 people of WPP AUNZ
- a strengthened balance sheet with reduced leverage metrics
- senior management of Michael Connaghan and Lukas Aviani will continue to lead the merged WPP AUNZ as CEO and CFO respectively
- a new board structure comprising independent directors and WPP nominees
“We believe this is a great deal for all stakeholders. This merger will drive growth, extend our reach, significantly increase the scale of our operations and position WPP AUNZ as the clear market leader,” said WPP AUNZ CEO Michael Connaghan, formerly CEO of STW.
“WPP AUNZ creates exciting opportunities for our clients, our shareholders and our people. It will be an organisation filled with insights, ideas, creativity and solutions provided by this country’s most outstanding talent. We will work together to meet our clients’ challenges, and will look to provide more opportunities for our people to learn and grow.
“Teamed with the opportunity to tap into WPP’s world-class tools, global resources and deep technology, WPP AUNZ will be a business unparalleled in our region.”
The merger simplifies the ownership structure of companies in which WPP and STW currently have joint ownership, including Ogilvy & Mather, Ogilvy Public Relations, J. Walter Thompson, Mindshare, Maxus and Added Value, and aligns the interests of both parties.
WPP AUNZ Chairman Robert Mactier said: “We are delighted that the merger with the WPP Australian and New Zealand businesses has received such a positive endorsement today from the STW shareholders. It indeed heralds a new and exciting era which will be very exciting for STW shareholders, WPP, our collective clients and all of the very talented people across the merged group.
“A lot of integration planning has been going on ahead of today’s shareholder meeting and with the approval of the merger we can now get on with the job of delivering the benefits and synergies for all our stakeholders. Through this preparatory work we are now even more convinced that this is the right strategic step for STW to take.”
WPP’s chief executive officer Sir Martin Sorrell said: “In the new era of ‘horizontality’, STW and WPP have a unique strategic opportunity to integrate their offerings and secure greater effectiveness and efficiency to the benefit of clients, not only in Australia and New Zealand, but globally.
“The separately quoted WPP AUNZ also offers a unique structure to achieve horizontality and motivate our people to do so, capitalizing on its already established leadership position.”
Merger Completion and Business Review
The merger is expected to be completed over the coming days, and the new name of the company will officially change upon expected shareholder approval in late May.
“Many benefits of this merger rely on our leaders knowing who’s in our new larger network of businesses, getting familiar with our different strengths and finding new ways to collaborate. As a priority, we’ll be looking for new and innovative ways for our agencies to connect and strengthen ties, and find opportunities to work together where it can benefit clients and people,” Connaghan continued.
“Similarly we plan to increase our already extensive training opportunities and provide access to a range of proprietary tools to help people, and their clients. We’ll also be reaching out to gain important access to global insight and tools, and international partnerships with leading brands. It’s an exciting future for all involved.”
Structure of the Board
Following completion of the merger, the WPP AUNZ board will comprise 11 directors:
Michael Connaghan CEO and managing director WPP AUNZ
Four independent Directors: Chairperson Robert Mactier, Graham Cubbin, Kim Anderson, Peter Cullinane (Iain Tsicalas will retire on completion of the merger)
Six WPP Nominees: Paul Richardson (WPP Finance Director), Geoff Wild AM (Non-Executive Director, Director WPP Australia Holding), Paul Heath (Chairman, Ogilvy Asia Pacific), Ranjana Singh (WPP Chairperson Indonesia/Vietnam), John Steedman (Executive Director), Jon Steel (WPP Group Planning Director)
Latest News
The Mars Agency Announces Latest Findings Of Retail Media Report Card
The Mars Agency has developed a scorecard that assesses the capabilities of leading platforms across key criteria required to optimally plan, execute, and measure effective retail media programs. The scorecard aims To help brands efficiently evaluate their spending options across retail media networks in Australia (and New Zealand). With spending on retail media advertising in […]
‘It’s The Lesser Of Two Evils’ – NRL Eyes US Betting Market As Aussie Regulators Circle
US betting firms will be delighted by the circa 50,000 Americans who could soon watch the NRL on their favourite app.
A-League In Deep Discussions With New Partner To Keep Games On TV After Production Company Enters Administration
The A-League's insatiable appetite for scoring own goals continues.
TV Ratings (27/03/2024): Jungle Members At War Over Concealed Lipstick
A heated argument between two jungle members did the numbers for Ten last night, with I’m A Celeb obtaining a total national reach of 1,282,000. Fans were delighted as Candice Warner and influencer Skye Wheatley got into it over a stick of lipstick, leading Warner to dub the Instagram star “selfish.” Wheatley, best known for […]
Is The Australian Music Industry In Trouble? Inquiry Launched Following Splendour Cancellation
Earlier this week, an inquiry was launched into the challenges and opportunities currently facing the Australian live music industry in the wake of multiple festival cancellations. On 25 March 2024, the Minister for the Arts, the Hon. Tony Burke MP, asked the Committee on Communications and the Arts to inquire into and report on the […]
Liana Dubois, Leandro Perez, Aimee Buchanan & More Gather For Inaugural Compadres Leadership Event
Didn't get the invite? Perhaps you're not as important as you thought.
Cathay Captures The Unforgettable Thrill Of Cathay/HSBC Hong Kong Rugby Sevens, Via Publicis
Nobody does rugby like Hong Kong, apparently. Certainly nobody does it as badly as Australia.
Cocogun Nabs Christine Watts, Kirsty Reynolds & Shev Tan Bolstering Management & Creative Teams
Cocogun bolsters its team with new hires. Committed to purchasing a bigger sofa, too.
The Media Store’s Jacquie Alley & Sam Cousins Take The Plunge With Pro-Bono Work For Cure Cancer
B&T chats with The Media Store bosses about their great pro-bono work and sponsored swim.
Hawke’s Brewing Co. Taps Rocket Comms For PR Agency Following Competitive Pitch
We're expecting Rocket Comms productivity to crash in spectacular fashion following this win.
Spotlight On Sponsors: Patties Serves Up A Taste Of Home For Olympians & South Sydney Rabbitohs Recommit To Gambling Reform
While the Rabbitohs commits to gambling reform, B&T reckons the team should commit to a decent auto sponsor.
Google: “Inevitable” That Bad Actors Will Abuse Ads Platform As Advertiser Account Suspensions Double
Google maintains it's simply impossible for it to entirely stop bad people placing & paying for ads using its service.
Quantcast Expands APAC Sales Team With Appointment Of News Corp Account Manager
No pressure at all when you are appointed as a client success manager.
Publicis Sapient Tests Microsoft-Powered Gen AI Search Tool With Homes & Villas By Marriott Bonvoy
Given Gen AI's record for mangling stuff, B&T cannot see the problem with letting it decide your next holiday digs.
Volkswagen & DDB Group’s “Roo Badge” To Reduce Kangaroo Related Road Collisions
Watch out for RooBadge as Cannes Lions' most debated campaign this year.
Twilio Launches Unified Profiles & Agent Copilot Features To Boost Productivity & Engagement
Agent Copilot sounds like James Bond's less interesting cousin.
Reebok & Honda Among New Clients For onetwo agency
OneTwo finally lives up to its name with this double billing.
Ogilvy Report: Throw Out The Social Strategy Rule Book, The Rules Of The Past No Longer Apply
B&T was puzzled that all 'influencers' aren't, effectively, 'virtual', but here we are.
WhiteGREY & AKQA Merge In Australia, Lee Simpson Departs
Fortunately, the combined agencies aren't opting for a trite portmanteau for the new name.
Splendour In The Grass 2024 Music Festival Cancelled!
Music fans all over the country reportedly relieved they can pack away their rain coats and gumboots for another year.
TV Ratings (26/03/2024): “Fairy Bread, F***ing Disgusting”: Gordon Ramsay Slams Aussie Food In Food Stars Launch
Ramsay not one for mincing his words, even when it comes to minced meat pies.
Paramount+ International Boss Doubles Down On Aussie Content, Says Ad-Tier will Grow Audiences And Revenue
Good news as Paramount will not be binning I’m A Celebrity for re-runs of Frasier.
Brent Smart: Telstra Pushing For 50-50 Brand-Performance Split But Warns Numbers ‘Won’t Look Great’ Initially
The old brand vs performance debate continues. But here, Brent is firmly sitting on the fence.
Crowded House, Tones And I & Dom Dolla Win Big At The Shure Rolling Stone Music Awards
B&T staffer reports back with humdinger of a hangover & feeling seriously uncool after mixing with music types.
Opinion: Dyslexia “A Hidden Gem” For Brands & Agencies
Dyslexics offer underappreciated benefits in the corporate field, according to this op-ed.
David Jones Taps Criteo To Power Online Retail Media Arm
Want to see ads for things you probably can't afford? David Jones has got you covered with new retail media play.
oOh!media Sets Up Team To Target Business Audiences Across Airports & Offices
oOh! wants brands to harass you every minute of your next business trip.
QMS Launches Australian First DOOH & TV Partnership With Samba TV
Samba TV, of course, is not a channel dedicated to dancing. Much to our dismany.
Slew Of New Hires At Amplify
Four new faces join the Amplify offices. Team say desk scarcity becoming "acute".
Adobe Announces Content Authenticity Initiative Expansions To Counter Deep Fakes
Try as they might to enlighten them, we suspect Trump supporters will continue to watch and believe Fox News.
The PR Group Appoints TechCrunch Senior Reporter Catherine Shu As Director Of Content & Media
Catherine Shu makes the bold leap from journalism to PR. Says inevitable pay bump was "unrelated".
HERO Nabs Ebony Santin From AMPR
Rumours Santin cleared out the stationery cupboard before departing are as yet unconfirmed.
Karena Noble Checks Out Of EVT Hotels & Resorts To Launch Comms Consultancy
Noble still managed to squeezed in a continental breakfast before departing.
Canva Acquires Design Platform Affinity To Bring Professional Design Tools To Every Organisation
Canva & Adobe face off continues. We're not picking sides but keenly aware that Canva's office is next door to ours.
“Lean On Our Team To Help You Find An Audience”: Why Understanding Audience Engagement Is Essential In Journalism
Engaging the audience is critical to journos, apparently. We'd thought self-loathing & alcoholism were key.
Adobe Summit: Major Gen AI Developments, Data Concessions & Partnerships
What happens in Vegas stays there. Unless it's the Adobe Summit and then you get to read about in B&T.