Andersen, the accountancy firm at the centre of the Enron scandal, and its rival auditor KPMG are hoping to seal a deal that will merge Andersen’s operations outside the US with KPMG. If the proposed takeover goes ahead, it will signify the end of Andersen as a global brand.
Discussions are still at an early stage and will require the appropriate approvals from local partners and regulatory authorities if the merger is to go ahead. What this will mean for the firms from a private equity standpoint and how many jobs will be effected is too early tell. A spokesperson from KPMG said that it is unlikely the deal will complete before October.
An announcement has already been made by member firms in China, Hong Kong and Russia that they intend to pursue an agreement with another firm. Andersen stresses this decision will have no impact on the effort to complete transactions between Andersen Worldwide’s non-US member firms and KPMG.
Mike Rake, chairman of KPMG EMA Region, said: “We are continuing to work together to consider possible ways in which we combine our operations throughout the major markets in Europe, Africa, Middle East, Canada, Asia and Latin America. Such a combination would be complementary in terms of geographic coverage and industry expertise.”