Havas has confirmed it’s not in the market to buy dentsu’s international business as a whole but could be “interested” in parts of it.
The issue was raised at a market analysts briefing about the France-based advertising group’s September quarter results.
Havas posted 3.8% organic growth with net revenue of 656 million euros for the September quarter with notable new business wins and a “very solid” performance in the US.
Dentsu has hired investment banks Mitsubishi UFJ Morgan Stanley and Nomura Securities to look at selling its international advertising business.
The Japan-based part of dentsu's business, making up 42% of net revenue, is doing well, posting 5.3% organic growth in the half year to June. But the international component, including a -8.9% slide in Asia-Pacific, dragged the company down to negative 0.2%.
At the Havas briefing, an analyst asked: “Just Dentsu International might be sold or have some assets to sell. Would you potentially be interested in some of the assets that are within Dentsu International?”
CFO and chief operating officer François Laroose said Havas had not been contacted by dentsu.
“We know that it's a very strong and big asset all over the world with a nice network, with some acquisition which has been done over the last two or three years,” he said.
“Clearly, Havas as a group does not project itself as a buyer for the entire international network. It would be too big for Havas looking at its balance sheet.
“Nevertheless, we remain very agile. If we were to be proposed some partnership or some disposal of certain assets, we certainly would consider that.
“We do not intend to study the network as a whole, but could be interested in part of it or in a partnership with some of the agencies of the network. We consider it a great asset.”
Market leader Publicis Groupe also appears to be out of the race to buy dentsu’s international business.
CEO Arthur Sadoun told an investment conference Publicisi is more interested in enhancing its data and AI capabilities than acquiring new business
He told a Bank of America investment day that Publicis was only interested in buying capabilities in data, technology and AI that will “enable us to continue to outperform the market” and deliver value to clients.
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.