The purchase of 51 per cent of the agency-which will now be called Effort Ogilvy - marks the first time an MNC has acquired a local ad player in a provincial, second-tier city.
Fujian Effort is best known for its work on behalf of Nanfu Battery and HuiQuan Beer. Ogilvy regional chairman Miles Young said: "It's been three years in the making. We've always wanted to do it, but it was just a question of finding the right agency."
Ogilvy's play also marks the first time that the Fujian Government has opened its communications sector to a foreign company, and Young believes an acquisition strategy is ideal for the region. "Fujian is very much a link between greater Shanghai business and the Pearl River Delta, and is a very attractive business area.
"Acquisition gives you ownership and you can decide how to invest and grow the business." Young refused to rule out the possibility of further acquisitions, and commented, "I am sure we will look at others." Fujian Effort has 42 staff and reported revenues of Rmb 15 million (US$1.8 million) for the year ended December 31 and had net assets of Rmb 6 million at that date.