WPP looks to offset Brexit with western European acquisitions
WPP is the world’s biggest advertising agency – but it’s based in Britain, and the company’s boss, Sir Martin Sorrell, is worried about the effects of Brexit. As a result, he’s ben looking for companies in Western Europe that WPP can buy to offset the damage. The latest of these is German agency Thjnk AG, which is based in Hamburg and employs around 400 people globally.
Sir Martin has been outspoken about his Brexit fears previously, and was a dedicated “remain” campaigner. This latest acquisition is the eighth WPP has made in region so far this year. Previous acquisitions include one in Spain, two in Ireland, two in France, one in the Netherlands, one in Norway, and one in Belgium.
Sir Martin describes this as a “practical response to Brexit,” – and hopes that these purchases will boost WPP’s profile in their respective countries before the inevitable break between Britain and the European Union.
WPP’s CEO has gone as far as to suggest that there should be a second referendum on Britain’s membership in the EU once the terms of an exit deal are known. That’s unlikely. But in buying up European companies, Sir Martin is at least guaranteeing that WPP can remain a powerful marketing force on the continent.
Dominion holds WPP in its Global Trends Managed Fund.
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