KPMG UK has held discussions with other KPMG firms in Europe with a view to additional mergers, it emerged today.

The merger has the backing of the firm's boards, but is still subject to partner approval.

'This is the first stage. After the discussions around the German and UK firms, further talks have been held with other KPMG member firms in Europe. It will be up to them to join,' Houlgate said, adding that the discussion had been going on for a couple of months.

UK chairman, John Griffith-Jones, said the merger would enable the firm's audit, tax and advisory businesses to deliver a more consistent international service.

'We do a pretty good job in the circumstances but it takes a lot of frigging around behind the scenes to [achieve] what appears reasonably seamless on the surface,' Griffith-Jones was quoted saying.

With a projected turnover for the UK and German firms in excess of £2 billion in the current year, KPMG Europe LLP will be - from the outset - the largest fully integrated accountancy firm in Europe.