The Nigerian firm had sued Scangroup’s subsidiary Scanad Nigeria in January 2013, arguing that the Nairobi Securities Exchange-listed company had orchestrated a plan to deny it business.
Marketing communications giant WPP Scangroup will re-enter the lucrative Nigerian market after the settlement of a five year old legal dispute that had hampered its entry.
The company said in a statement it had abided by a Lagos High Court's ruling and settled with local firm Prima Garnet Communications.
The company took Scanad Nigeria to court in 2013, accusing it of denying business. Prima Garnet alleged that its old partner, Ogilvy Africa had violated the terms of their partnership which prevented them from entering into partnership with other companies.
Scangroup's entry will be via joint a venture with another Nigerian firm according to CEO Bharat Thakrar.
“This will allow us to launch creative and media buying in Nigeria,” Mr Thakrar said, adding that the company’s other subsidiaries in the country currently offer research and public relations services.
Scangroup will take a 24.9 per cent stake in the planned joint venture in line with current limits on foreign ownership, Mr Thakrar said.