Maxus and MEC to merge
Thanks to a unique ownership structure it could take “many months” for the regional agencies to combine.
Group M is merging the global operations and teams of its agencies MEC and Maxus into a new agency.
In the Middle East and North Africa, the transition will take “many months” to complete, thanks to a unique partnership structure.
The new agency, which has not yet been named, will be led by MEC’s global chief executive, Tim Castree.
Maxus global chief executive Lindsay Pattison will continue as Group M’s chief transformation officer.
Group M’s portfolio will now comprise three global media agency networks: Mindshare, MediaCom and the new company, plus digital agency Essence.
A spokesman for Group M said there were “surprisingly few” client conflicts between MEC and Maxus. “Where there are conflicts we are working through that on a case-bycase basis,” he said.
He added that a name for the agency was forthcoming. “Right now, we’re starting a six-month process. When you have companies of this size and scale, it’s a process,” the spokesman added.
“Maxus and MEC share common values and ambitions. Both networks have a strong local market presence and entrepreneurial drive. Together, we believe we can create an exciting new media, content and technology agency which we look forward to introducing soon,” Castree said.
In the Middle East, Maxus is majority owned by holding group BPG, with only a minority stake held by WPP.
In a statement sent to Campaign, Group M MENA, which is headed by Filip Jabbour, said: “We are just beginning a transition project that will take many months to complete; it’s business as usual for BPG Maxus in MENA for now. BPG Maxus does have a unique ownership structure in MENA, the partnership with BPG, and for this reason we anticipate the transition may take some additional time in MENA.” BPG had the same response to queries.
In a separate statement, Group M chief executive Mark Patterson told
Campaign Asia-Pacific that Maxus will remain a separate agency, but only as a local brand, in India.
The Maxus brand holds a unique position in India as one of the top agencies in the market, with a strong reputation and significant clients including Tata Motors.