KPMG's UK And German Operations To Merge

by Robin Pilgrim, LawAndTax-News.com, London

16 October 2006

Big Four consultancy and accounting firm, KPMG has announced that its member firms in Germany and the United Kingdom plan to merge, forming a new entity to be known as KPMG Europe. The firm will reportedly operate as part of KPMG International.

KPMG earlier this month stated that:

"We believe that the creation of a truly European firm, KPMG Europe LLP, will be a pioneering move which will help us to look after our clients’ interests even more effectively and provide greater opportunities for all our people."

"KPMG’s business has always been shaped by the markets we serve. The unprecedented growth in the flow of capital through the European capital markets has significantly increased the rate of corporate change. This, in turn, has increased the need for a strong and robust firm which has the authority to speak out with a single voice on audit, advisory and tax issues."

"KPMG Europe, formed initially by the merger of the UK and German firms, will become the largest integrated accounting firm in Europe on day one. This is, however, only the start of our journey: it is our ambition to merge other KPMG European firms, should they wish to join, into the new entity as quickly as is realistically possible."

The firm went on to observe in a statement accompanying the announcement that:

"There can scarcely be a single European organisation, of any size, which is untouched by cross-border considerations, whether that is in dealing with suppliers and customers, having overseas parent or subsidiaries or, indeed, dealing with multiple regulators. By pooling the talent, expertise and service capabilities that exist in our individual countries, we believe we will create a practice which is 'fluent in Europe'."

The merged firms will initially have turnover in excess of GBP2 billion (EUR2.9 billion), extensive geographic coverage through 22 offices in the UK and 22 in Germany, and more than 17,000 employees.

Recommended