Grey Group, one of the largest global communications networks, announced on Nov 28 it had signed an agreement to acquire, on conditional regulatory approval, a majority stake-holding in ArtM Communications Group.

"The acquisition highlights Grey's commitment to investing in its capabilities in China," said T. H. Peng, chairman and chief executive officer of Grey China.

ArtM, a leading full-service integrated communications company in China, created an unaudited revenue of approximately 45 million yuan ($7.2 million) in 2011 with gross assets of 157 million yuan ($24.9 million).

With offices in Beijing, Shanghai, Shenzhen and Guangzhou, in Guangdong province, it offers services including advertising, branding, digital marketing, public relations, events, retail marketing, merchandising and channel promotion.

"The merger will personify our philosophy of famously effective brand building to create the strongest comprehensive offering in the industry," said Peng.

The event, costing 203 million yuan ($32.2 million) in funds, will help Grey boost its service capabilities and presence in China, he said.

Grey's strategy is to enlarge business in the China market by acquisition of Chinese companies. "Negotiations are under way to discuss mergers with some local companies," he said, without giving details.

Peng said acquisitions are able to make clients get the best expertise and world-class professional services required to realize the massive potential in this market.

In 2011, Grey achieved revenues of $40 million from the Chinese market, which is expected to grow by 10 percent this year.

"A partnership with ArtM will make it possible for Grey to increase revenues in Chin by 20 per cent next year, turning it into one of top 10 communications networks in the China market," Peng said.

chenqide@chinadaily.com.cn