WPP agencies AKQA and whiteGREY will become one in the Australian market, following a global "strategic realignment" that has seen Grey retire its brand in five markets as it focuses on its "highest performing studios".

The move sees whiteGREY Australia CEO Lee Simpson step down after almost six years in the role, where he previously oversaw the local merger of The White Agency and Grey.

CEO of AKQA AUNZ, Brian Vella will lead the new combined agency, which will continue as AKQA Australia and New Zealand. It is understood that no other roles have been affected.

WPP country president, Australia & New Zealand, Rose Herceg, described Simpson as a "smart, gutsy and a leader whom we all respect."

"Lee has set the foundation for the next exciting period in AKQA Australia and New Zealand’s evolution. Lee can be incredibly proud of the contribution he has made. I have enjoyed every minute of working with Lee. It’s been a personal highlight for me," said Herceg.

Simpson will continue to work alongside Vella for next couple of months to ensure a seamless transition, supporting the new AKQA AUNZ team and its clients.

This realignment, which will also impact Grey's presence in China, Italy, the UAE and Belgium, is part of Global CEO Laura Maness's vision of creating a 'borderless Grey'.

The localised mergers have been positioned as combining both agency's complementary strengths and expertise, with minimal role duplication.

"AKQA and Grey have already been working together in these regions, and our areas of expertise complement each other perfectly," said Laura Maness, Grey Global CEO. "By bringing our teams together, we're combining the best of both worlds-Grey's renowned creativity and AKQA's world-class design and innovation. I'm confident that this move will benefit not only our employees but also our clients, who will have access to a truly unparalleled pool of diverse talent and expertise."

AKQA will assume management of Grey's Australia, Italy, UAE and Belgium studios, with with Grey's senior management becoming part of the local leadership teams.

In China, Grey will assume management of AKQA's Shanghai studio (where both brands will continue to operate under one leadership team) and extend their heritage of Famously Effective work for brands including Volvo, L'Oreal, and Nike.

"We are proud to partner with Laura's team and believe the Grey brand has lasting value. Driving operational excellence is core to our mission of delivering sustainable growth and in service of building a leaner, more agile agency to improve our performance and better enable our long-term vision." said AKQA's Founder and CEO, Ajaz Ahmed.

There are no plans for any other Grey studios to be integrated into AKQA.