Financial terms could not be confirmed. The move is tipped to result in staff and management changes, with the agency adopting a new name, DDB Beijing.
According to sources Yan Gang, chairman of DDB Guoan, will be less involved with the business, with the Beijing operation becoming a major part of CEO Dick Van Motman’s China focus.
Van Motman declined to comment. However, he noted that the agency would be “increasing action levels in Beijing for good reasons”.
“Shanghai has got to a certain size and we want to do more with Beijing,” he added.
Omnicom formed the Citic alliance in China in July 2006. The first phase of the partnership was the formation of DDB Guoan Communications Beijing, created by the merger of DDB China and Beijing Guoan Advertising Corp.
The holding company claimed it would own the majority of shares in the merged advertising agency, and would double DDB’s size in the mainland market overnight. There were plans to open offices in Shanghai and Guangzhou.
However, according to sources, the JV — with Citic’s Yan as chairman and DDB’s Van Motman its chief executive — faced “cultural and personality” issues early on.
A source said: “The agency wants to buy back more equity to give it a greater majority, so it has control to make sure it is not run in a traditional Chinese manner. By doing this DDB will have greater opportunities with clients, namely Volkswagen, looking for international expertise.”
The source added that the “issue wasn’t so much with Citic, but with a senior person running the agency”.
Omnicom’s Citic deal made global headlines in 2006; its announcement came less than 24 hours after a high-profile split between the Chinese conglomerate and its partner for 14 years, WPP’s Grey Worldwide.
Yan, vice-chairman of Citic Guoan and head of Beijing Guoan Advertising Corp, alleged at the time that WPP chief Sir Martin Sorrell had treated him brusquely during a meeting in London called to address management problems at the joint venture, which WPP had acquired along with Grey.
Citic Guoan did not respond to questions by press time.
According to sources Yan Gang, chairman of DDB Guoan, will be less involved with the business, with the Beijing operation becoming a major part of CEO Dick Van Motman’s China focus.
Van Motman declined to comment. However, he noted that the agency would be “increasing action levels in Beijing for good reasons”.
“Shanghai has got to a certain size and we want to do more with Beijing,” he added.
Omnicom formed the Citic alliance in China in July 2006. The first phase of the partnership was the formation of DDB Guoan Communications Beijing, created by the merger of DDB China and Beijing Guoan Advertising Corp.
The holding company claimed it would own the majority of shares in the merged advertising agency, and would double DDB’s size in the mainland market overnight. There were plans to open offices in Shanghai and Guangzhou.
However, according to sources, the JV — with Citic’s Yan as chairman and DDB’s Van Motman its chief executive — faced “cultural and personality” issues early on.
A source said: “The agency wants to buy back more equity to give it a greater majority, so it has control to make sure it is not run in a traditional Chinese manner. By doing this DDB will have greater opportunities with clients, namely Volkswagen, looking for international expertise.”
The source added that the “issue wasn’t so much with Citic, but with a senior person running the agency”.
Omnicom’s Citic deal made global headlines in 2006; its announcement came less than 24 hours after a high-profile split between the Chinese conglomerate and its partner for 14 years, WPP’s Grey Worldwide.
Yan, vice-chairman of Citic Guoan and head of Beijing Guoan Advertising Corp, alleged at the time that WPP chief Sir Martin Sorrell had treated him brusquely during a meeting in London called to address management problems at the joint venture, which WPP had acquired along with Grey.
Citic Guoan did not respond to questions by press time.
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