Dentsu Aegis Network has reached an agreement with Grant Group to acquire a majority stake in the long-established Sri Lankan advertising group.

Dentsu Aegis Network will acquire 85% of the shares in the Grant Advertising Group and 70% of the shares in Grant Agencies, both of which are members of the Grant Group, while retaining the option to convert these companies to wholly owned subsidiaries at a later date.

The acquisition will see Dentsu Aegis secure a strategic base to expand business in the South Asian market with Sri Lanka viewed as an emerging market with high levels of ongoing economic growth.

Grant Group is Sri Lanka’s largest independent creative agency, representing over 60 international and local clients. It comprises two groups, Grant Advertising Group and Grant Agencies, providing advertising and media services, creative, PR, content, digital and other services under seven brands.

Following the acquisition, the two companies within the Grant Advertising Group will be rebranded with Grant Advertising renamed as Dentsu Grant and Grant Media joining Carat.

“With social and economic stability in the country, Sri Lanka is set to reap the peace dividend,” said Dentsu Aegis Network APAC chief executive Nick Waters. “Significant foreign investment is already flowing into the country, and with strong historical ties to Japan, there is a natural opportunity for Dentsu Aegis Network clients to grow.

“Grant represents a unique opportunity as a top quality advertising and communications group to get into a strong position in a fast-growing market.”

Grant Group leader Neela Marikkar will remain in charge as chairperson and managing director of the Dentsu Aegis Network Grant Group, reporting to Dentsu Aegis Network South Asia chief executive officer and chairman Ashish Bhasin.

“We are very excited to be able to tap on the network’s resources and work with the 38,000 great people at Dentsu Aegis Network,” said Marikkar. “We are beginning a new chapter in the wonderful story of the Grant Group.”