Nairobi — Scangroup Ltd could extend its dominance in the media buying and public relations market in East Africa by acquiring a stake in one of its key rivals.

According to a reliable source, who cannot be named because of the sensitivity of the matter, Scangroup chief executive officer could this week be announcing his buyout of 10 per cent in Ogilvy & Mather.

The deal is in line with the firm's CEO Bharat Thakrar goals.

He has been working hard to increase revenue since the firm listed at the Nairobi Stock Exchange in 2006.

However, rather than growing the earnings organically by, for example outbidding competitors, Mr Thakrar has opted for acquisitions and joint ventures, targeting rivals that hold key accounts.

For instance, in 2006 the firm acquired a majority shareholding in FCB Tanzania, the agency that handles advertising for Vodacom Tanzania, the largest advertiser in that country.

In January 2007, it also acquired a 50 per cent stake in Red Sky Kenya Ltd, the agency that handles advertising for Safaricom.

Interestingly, both Scangroup and Ogilvy & Mather are part of the WPP Group plc, the world's second largest communications services group in terms of revenue.

Cavendish Square Holding BV, a subsidiary of WPP, acquired a 27 per cent stake in Scangroup last year making it the single largest shareholder followed by Mr Thakrar with 20 per cent.

The group has lately entered into joint ventures with WPP.

It has partnered with Indian digital marketing and technology businesses, Smile Interactive Technology Group and Quasar, which is part of WPP Digital to set up Squad Digital.

It has launched two companies, Millward Brown East Africa, a marketing research and brand consulting business, and Hill & Knowlton East Africa, a public relations consultancy with WPP.

WPP is also linked to a number of marketing, advertising, research, communication and monitoring firms operating in the country.

They include Y&R, Research International, Wunderman, Mindshare and Mediaedge.

Scangroup is the holding company for media buying firms, Media Initiative East Africa and Universal McCann, advertising companies, Lowe Scanad (Kenya, Uganda and Tanzania), Thompson Kenya, McCann Kenya, Grey East Africa and Redsky, public relations company Scanad Public Relations (now Hill & Knowlton East Africa) and activations and experiential marketing company, Roundtrip.