KSA: Saudi Arab’s Tihama Advertising and Public Relations Company recently concluded the merger between the J. Walter Thompson MENA business and the Wunderman MENA business. The merger, finalized on June 23, 2023, was officially announced through a bourse filing.
The primary objective of this merger is to establish Wunderman Thompson MENA EC, a holding group headquartered in Bahrain. Additionally, by bringing together these two businesses, Tihama Advertising aims to leverage their combined expertise and resources to enhance their market presence and client offerings.
Following the merger, new shares were issued, resulting in Tihama Advertising, Public Relations, and Marketing Company holding a 25% ownership stake in Wunderman Thompson Middle East and North Africa Company.
Moreover, the financial implications of this merger will be reflected in the future financial periods, taking into account Tihama’s share in the net assets of the associate company as of the merger date. This merger transaction is expected to contribute to the growth and profitability of both companies involved.
Tihama Advertising also confirmed the successful transfer of legal ownership and completion of all necessary regulatory approvals, ensuring a smooth transition and adherence to the required legal framework.
Furthermore, it is worth highlighting that the agreement for this merger was initially announced in July 2021, when Tihama Advertising, as a listed company, disclosed its partnership with WPP Group. The objective was to merge the J. Walter Thompson MENA business, an associate of Tihama, with the Wunderman MENA business, thereby establishing Wunderman Thompson MENA EC as a prominent holding group with a base in Bahrain.
This strategic move sets the stage for a new era of growth and collaboration within the advertising and public relations industry in the Middle East and North Africa region, with Wunderman Thompson MENA EC poised to provide innovative and comprehensive solutions to its clients.