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WPP To Bid For Tesco’s Dunnhumby Unit

By Publications Checkout
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WPP To Bid For Tesco’s Dunnhumby Unit

WPP, the world’s biggest advertising company, has submitted a bid for a majority stake in Tesco’s Dunnhumby customer data unit, as it expands its data and analytics businesses, a person familiar with the matter said.

The person asked not to be named as the process isn’t public. Spokesmen for WPP and Tesco declined to comment.

A deal would give WPP access to Dunnhumby’s information on almost 1 billion consumers worldwide, and to analysis tools that help companies set prices, choose products and target promotions.

Dunnhumby’s clients include Procter & Gamble, General Mills and Coca-Cola, according to its website. WPP last month also bought a stake in researcher ComScore.

Tesco is asking for £2 billion for the business that developed its clubcard loyalty program, and has attracted interest from Warburg Pincus, Carlyle Group and TPG, people with knowledge of the talks said last month.

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Tesco’s CEO Dave Lewis is selling assets, closing stores and cutting prices to help revive the UK grocer.

Lewis had appointed Goldman Sachs Group to explore options for Dunnhumby, which included a sale or initial public offering. The company also sold its movie-streaming service Blinkbox to TalkTalk Telecom Group.

The Sunday Telegraph reported WPP’s bid for a majority stake in Dunnhumby earlier. Tesco plans to keep a minority stake, the newspaper said.

Bloomberg News, edited by ESM

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