1st Oct 2024 10:39
(Alliance News) - WPP PLC shares rose on Tuesday after the company's Mindshare won business with Unilever PLC after the consumer good firm's "media agency review".
WPP shares rose 2.5% in London on Tuesday morning at 782.60 pence each, among the best FTSE 100 performers.
Unilever on Monday confirmed its roster of media agencies for work across the globe. It followed a nine-month review by the Ben & Jerry's ice cream and Dove soap owner.
AJ Bell analyst Russ Mould commented: "Losing Unilever as a client would have been a major blow, so it was no surprise to see investors expressing some relief."
Advertising agency WPP's Mindshare unit won Unilever business, regions including Australia & New Zealand, Central Eastern Europe, North America, UK & Ireland, China, and South Asia. The South Asia region includes India, while China excludes Hong Kong and Taiwan, where work was won by New York City-based Omnicom Group Inc.
Mindshare also earned Unilever business in Indonesia, Italy, the Nordics, Sub Saharan Africa and the Netherlands & Belgium region.
Unilever confirmed the appointments after a nine-month review "across multiple markets".
"The competitive process, which is line with Unilever's standard practice of reviewing agency partners periodically, was kicked off earlier this year to ensure best-in-class support in a competitive and dynamic media landscape, aligned to Unilever's growth action plan," the firm said.
Elsewhere, Paris-based Publicis Groupe SA won business in the Malaysia, Philippines, Singapore, Thailand and Vietnam region.
Havas Media, currently part of Vivendi SA, won deals in France and Spain. Vivendi is set to spin out Havas, which will be listed on the Euronext Amsterdam stock exchange.
In Paris, Publicis rose 0.5% to EUR98.70 a share. Vivendi was marginally higher at EUR10.38.
Interpublic Group of Cos Inc won business in areas including Canada and Latin America, while Tokyo-based Dentsu Group Inc was selected by Unilever in Japan.
Unilever's Chief Growth & Marketing Officer Esi Eggleston Bracey said: "It's fantastic to accelerate this journey with both new and long-time partners. Together, we have an exciting opportunity to further optimise our media and content to better reflect people and culture as we continue to build our brands and drive to commerce."
Unilever shares traded 0.3% higher at 4,855.00p each in London on Tuesday morning. The stock is up 28% year-to-date.
In March, it announced plans to spin off its ice cream business.
A demerger is the most likely separation route, Unilever said at the time, although other options will be considered to maximise returns for shareholders.
Full separation is expected by the end of 2025.
Following separation, Unilever said it will become a simpler, more focused company, operating four business groups across beauty & wellbeing, personal care, home care and nutrition.
By Eric Cunha, Alliance News news editor
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.