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US-based holding group the Interpublic Group of Companies (IPG) has increased its stake in the Middle East Communication Network (MCN), the parent company of Fortune Promoseven advertising agency.
 
MCN’s other interests include Universal Media planning and buying agency, Weber Shandwick PR, and the creative agency Lowe MENA.
 
Michael Roth, chairman and CEO of IPG, says in a press release, “The MENA region is one of the fastest growing markets in the world, both in terms of population and GDP. Our shared history with MCN makes this a logical step for IPG. It gives us and our clients an unrivalled depth of talent and capabilities in MCN’s markets and it gives MCN’s regional clients access to the full breadth of the global IPG network.”
 
Fortune Promoseven was previously the largest independent ad agency in the region, although it worked closely with IPG’s McCann Erickson on aligned business.
 
Tom Roychoudhury, MCN’s chief innovations officer, tells Communicate the region can expect more internationally aligned accounts. “We already have several IPG-aligned accounts, like L’Oreal, like Nescafe,” he says. “[The deal] will open up doors and opportunities to approach those clients who are not currently in our fold, but who are part of IPG.”
 
The advantages are mutual, he continues. “It also opens doors for IPG as well in this market, and I think that was one of the reasons they took a long hard look at this. Built into the process is increased opportunities for both sides.”
 
Earlier this year, WPP acquired a controlling share in Dubai-based The Holding Group, and has long been in negotiations to take control of Memac Ogilvy.
 
Choudhury says that despite tighter ties, MCN brands will maintain their identities. “All of our brands are going to be aligned with all of their brands. FP7 was always aligned with McCann Erickson, but the alignment will be closer,” he says. “There will be no branding changes and no staff changes. There will be no changes at all in leadership.”
 
The systems and standards IPG brings with it will make up for any loss of financial independence, says Roychoudhury. “When you are part of a stock-listed company, everything becomes a lot more accountable, which I think is a good thing for an agency in the Middle East. … Compliance to international standards – and IPG uses very demanding standards – is now part of the game, and something that is good for us, that really optimizes the way we work.”
 

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