Havas to make Asia-Pacific acquisitions

22 September 2010

SINGAPORE: Havas expects to generate 20% of its revenues from Asia-Pacific by 2015, and will boost growth by making several new acquisitions in the region.

David Jones, Havas Worldwide and Euro RSCG ceo, said in an interview that Asia is now a "priority" for the organisation.

Havas currently generates just 5-6% of revenues from Asia-Pacific.

Jones put the planned expansion in the context of the increasing economic power wielded by consumers and firms in the area.

"You are not only seeing a huge number of new businesses spring up in Asia, but you are actually seeing Asian companies take control of some of the big global businesses," he said.

Healthcare and online media specialists are expected to prove especially attractive targets for aquisitions.

Globally, businesses worth $10 to $20m (€7.6-15.2m; £6.4-12.8m) are in Havas' "sweet spot", Jones said.

The holding company is looking to take over 50% of the business - in other words, a controlling stake - each time.

Havas currently owns 24 agencies based in India, 18 in China, seven in Singapore, five in Thailand and four each in Hong Kong, Philippines, Japan and South Korea.

Last month, a report from R3:GC suggested that both creative and media agencies are facing significant challenges in the Asia-Pacific region.

The consultancy said there was a "revolving door" for executives, with eight of the 18 largest creative networks - and four of the 14 largest media planning and buying networks - having replaced their ceo during the previous year.

Data sourced from Bloomberg/Havas; additional content by Warc staff