Havas global CEO hints at further expansion but admits clients are nervous over future
Havas chief executive Yannick Bolloré has signalled his intention to continue the firm’s expansion in Asia following the acquisition of Indochina specialist Riverorchid.
The deal followed the purchase by Havas of its affiliate in Vietnam, with Bolloré revealing further deals in Asia were likely.
But he warned the industry faces “uncertainty” with clients nervous about the future following the China downturn.
Havas announced the agreement with Riverorchid co-founders Santiphong Pimolsaengsuriya, better known as Pick, and Warwick Olds last week with the agency to rebrand as Havas Riverorchid.
The deal, which is to be completed by the end of the year, gives Havas a physical presence in Cambodia, Laos and Myanmar for the first time, and bolsters its operations in Thailand and Vietnam. Havas now claims to be the only network with a presence in all five Indochina markets.
Bolloré described the deals for Riverorchid and its Vietnam affiliate as “important investments”.
“I think we need to continue to invest in other parts of Asia,” he told Mumbrella Asia. “I do not have anything specific to announce but can say we are continuing to look seriously at new companies to partner with.”
But he added he was “cautious” of who Havas does business with, remarking that “one plus one never equals two”.
“Our goal is to find a number above two and not below,” he said.
While Bolloré insisted Havas was in a “position to consider acquisitions”, he warned the wider market has been struggling since July following the Shanghai stock market crash.
“[That was] a wake-up call,” he said. “For me, the big obstacle [for growth] is stability. The problems we faced over the last two months are to do with uncertainty about the future.”
“Our clients are worried about the unexpected consequences of slowdown in China.”
Read the full interview on Mumbrella Asia.
