The long-awaited merger between Martin Sorrell's WPP and STW Communications will go ahead with WPP taking a 61 per cent stake in the Australian-listed marketing and advertising services company.  
A takeover bid was not unexpected and had been rumoured for many years. STW and WPP have worked closely together since the late 1990s and partner in businesses such as Ogilvy; prior to Monday's announcement WPP was the largest shareholder in STW with a 23.6 per cent stake.
The combination of WPP's Australia and New Zealand operations with STW is expected to create a business with annual revenue of $847 million and with a combined $142 million in earnings before interest and tax.
"Australia and New Zealand is our fifth-largest market after the United States, the United Kingdom, Greater China and Germany. The merger of our Australian and New Zealand operations with STW, will give us a unique opportunity to offer our local and international clients a comprehensive set of services and to make sure we can offer the best talent through country management," Mr Sorrell said in a statement.
"It will also enable STW to focus on the Australian and New Zealand markets, which it knows best, with a structure that will strongly incentivise its people."
More to come.