Saudi's Tihama pens JV creation, merger agreements with WPP

The new JV will provide a range of communications and media services in Saudi Arabia through client-facing agency brands, the company said in a disclosure to the Saudi Stock Exchange (Tadawul) on Thursday.

WPP will hold an interest of 70% of the JV, while Tihama will own the remaining 30%.

The initial operations of ICG will serve customers through the following brands: Ogilvy, MediaCom, Mindshare, Wavemaker, and Grey. More brands will be added as new opportunities arise.

ICG Saudi Arabia will present a new vehicle for WPP to bring more of its brands into the kingdom.

The deal is subject to the completion of the transfer of legal ownership and all other required regulatory approvals before 31 December.

In a separate disclosure, Tihama announced an agreement with WPP to the merger of the J Walter Thompson MENA, an associate of Tihama, with Wunderman MENA to create Wunderman Thompson MENA, a Bahraini-based holding group.

The decision follows the global merger of J. Walter Thompson and Wunderman to create Wunderman Thompson in 2018.

With over 800 employees, Wunderman Thompson MENA will have offices in Dubai, Egypt, Kuwait, Lebanon, Morocco, and Tunisia, along with operations in Saudi Arabia.

Upon completion of the transfer of legal ownership and other required regulatory approvals, Tihama will own 25% of Wunderman Thompson MENA.

The deal is subject to the completion of the transfer of legal ownership and all other required regulatory approvals before 31 December.