NEW YORK, June 8 /PRNewswire-FirstCall/ -- Omnicom Group Inc. and China's CITIC Guoan Group today announced the formation of a strategic partnership that provides a broad range of opportunities by bringing together the unique capabilities and massive strength of both parties across all areas of advertising and marketing services in China.
CITIC Guoan is a division of China CITIC Group, which was created in 1978 by Deng Xiaoping. The CITIC Group played an integral role in China's open door policy and has become one of the most influential business entities in China, with total assets in 2004 of roughly US$90 billion. CITIC Guoan is a multifaceted division and plays a key role within the CITIC Group, handling information industry operations including cable TV network investment and management, telecom, satellite communications, as well as all advertising, media, sports and cultural business opportunities for the Group. It oversees more than 75 companies and has in excess of US$2.2 billion in assets.
CITIC Guoan Group's Executive Vice Chairman, Mr. Yan Gang, said: "It is an extreme honor for CITIC Guoan to be partnering with the world's largest and finest advertising and marketing group, Omnicom. Their record for outstanding creativity, impeccable integrity, respect for their partners and cultural diversity, combined with our 18 years of experience advising top Chinese and international brands, will undoubtedly create a major force in advertising and marketing services in China."
John Wren, President and CEO of Omnicom, said, "This is an incredibly exciting time for Omnicom in China, which is one of the key strategic markets for us globally. This is a perfect alliance, with each party bringing unique and unparalleled capabilities to the table. I very much look forward to a long and fruitful partnership with CITIC Guoan, which offers both groups significant opportunities."
The Omnicom Group employs more than 60,000 people globally who work across a range of disciplines including advertising, marketing and corporate communications. The Omnicom Group comprises: three global advertising agency networks; a global network of more than 175 companies in specialty communications; leading national advertising agency brands based in the United States; and a media group that includes two of the world's premier providers of media planning and buying services. Operating in over 100 countries, Omnicom Group's connected global resources service more than 5,000 clients and rank 174th in the S&P 500.
The first phase of the CITIC Guoan-Omnicom partnership will be the formation of an advertising agency, DDB Guoan Communications Beijing Co., Ltd. (DDB Guoan). This agency will be created by the merger of DDB China and Beijing Guoan Advertising Corp. DDB China is part of DDB Worldwide, one of the top 10 global advertising networks, which is part of the Omnicom Group. Beijing Guoan Advertising, a subsidiary of CITIC Guoan, is one of the leading agencies in China and currently ranks among the top 10 there in terms of revenue. Omnicom will own the majority of shares in DDB Guoan.
Yan Gang will become Chairman of DDB Guoan. Dick van Motman, President and CEO of DDB China, will be CEO of DDB Guoan. The agency will be headquartered in Beijing, with offices in Shanghai and Guangzhou. DDB China currently services clients such as Philips, Johnson & Johnson and PepsiCo, while Beijing Guoan Advertising's clients comprise brands such as China First Auto Works, China Unicom and CITIC Bank. DDB Guoan will be one of the leading advertising agencies in China when it opens its doors for business July 3.
Michael Birkin, Omnicom's Vice Chairman and Chairman and CEO Asia Pacific, said: "The partnership reflects the approach Omnicom has taken in every major market -- to strive to have the best provider of advertising and marketing services to local as well as multinational clients. This alliance will provide unparalleled reach in China."
Serge Dumont, Senior Vice President and President Asia Pacific of Omnicom, added, "Omnicom has been steadily deepening its position in China and we are truly delighted to have established a strategic relationship with the CITIC Guoan Group, whose influence, knowledge of the market, and unique access make it an invaluable partner. This alliance is a clear manifestation of our strategy to become the advisors of choice for multinational brands expanding into China and for Chinese brands expanding abroad. I am confident that Chairman Yan's sterling reputation in the industry will prove a unique asset in realizing our common objective to be the best advertising and marketing services group in China."
About Omnicom Group Inc.
Omnicom Group Inc. (http://www.omnicomgroup.com/) is a leading global marketing and corporate communications company. Omnicom's branded networks and numerous specialty firms provide advertising, strategic media planning, direct and promotional marketing, public relations and other specialty communications services to over 5,000 clients in more than 100 countries.
About CITIC Guoan Group:
CITIC Guoan Group began its operations in 1987. Today it is a wholly owned subsidiary of China CITIC Group.
It was right from the start of China's open-door policy, that the conglomerate now known as China CITIC Group first began its operations in 1979. Its initial name was China International Trust & Investment Corporation (CITIC). Since then it has grown into a multinational and multifaceted group enterprise with operations around the world, with total assets in 2004 of roughly US$90 billion.
Over the years, CITIC Guoan Group has evolved into a comprehensive and diversified enterprise group. Its scope of business includes information- related industries (including cable TV network investment and management, telecommunications, satellite communications, network system integration, software development, advertising and cultural industries, high-technology and resources development, tourism, real estate and more. CITIC Guoan is now a member company of the APEC China Enterprises Assembly, The China Enterprise Federation, and The China Entrepreneur Association. "Guoan" is now a famous trademark and highly recognized brand in China.
