Publicis Groupe boss Maurice Levy seems to have decided that Brazil is where the action is and he’s expected to snap up another agency there, Talent, for around $200m and add it to his recent acquisition of digital agency AG2.
The move won’t have gone un-noticed at WPP Towers where boss Sir Martin Sorrell said this week that he expected to make some more small to medium-sized acquisitions.
But Sorrell already has plenty of agencies in Brazil where his big US outposts JWY, O&M, Grey and Y&R all have established presences and he’ll be wary of being caught up in a bidding war with Publicis which is awash with cash as its revenues are improving faster than its marcoms rivals. Publicis has also recently eschewed mega-acquisitions like WPP’s £1.2bn purchase of research firm Taylor Nelson Sofres in 2008 so is arguably better placed to pay top dollar.
Talent handles accounts including Santander, Sony and Timberland in Brazil which is the fastest-growing ad market outside Asia with seven per cent plus expected this year.
With the World Cup in 2014 and the Olympics in 2016 to look forward to, Brazil looks a sensible place to invest.