Both companies are listed on the German stock exchange and had combined revenues of around €88m (£52.5m) in 2000. Under the terms of the merger agreement, Cordiant will acquire 19% of UVE for €5m (£3m) in cash. Scholz & Friends Group will then transfer its business and assets to a new company, Scholz Friends AG, with which UVE will merge.
Cordiant will hold a majority stake of more than 80% in the new company once the merger has taken place. It says the company will be Germany's first publicly quoted advertising and marketing communications group in what is the world's third-largest communications market.
Scholz chairman and chief executive Peter Schoning will head up the new company, aided by Thoman Heilman and Sebastian Turner, both currently running Scholz's Berlin office, who will become joint chief executives.