Merged Chinese firm looks to retain RSM and Crowe Horwath
RSM and Crowe Horwath Chinese firms merge - but wants to keep membership of both networks
THE CHINESE FIRMS of RSM International and Crowe Horwath have merged – but the new practice could remain tied to both networks.
The new firm, called Ruihua China CPAs, will be integrated from the last quarter of 2013 and have a combined revenue of RMB2.8bn (£294m) and 334 partners.
Yang Jiantao, principal partner of Crowe Horwath China, and Gu Renrong, principal partner of RSM China, will be the managing partners of Ruihua China CPAs.
The merger is likely to elevate the firm into the top four biggest firms in the country.
In an unusual move, the merged firm wishes to remain within the two international networks. Usually one network would be picked to operate within, leaving the other to find a new member. However, the new entity wished to remain within both, but “in all other markets RSM and Crowe Horwath will remain mutually respectful competitors”.
The heads of the two networks, Jean Stephens (RSM International) and Kevin McGrath (Crowe Horwath) said the deal would help expand their service offerings in the region.
RSM International is considering the new firm’s offer to remain in both networks.