PracticeAccounting FirmsEXCLUSIVE: EU monitoring Andersen merger plans

EXCLUSIVE: EU monitoring Andersen merger plans

The European Commission is 'continuously monitoring' developments involvingthe accountancy firm Andersen following the collapse of the proposed merger between the firm's non-American operations and those of KPMG.

Speaking exclusively to Accountancy Age ahead of this morning’s shock announcement that Andersen in the UK would now merge with Deloitte & Touche, Brussels expressed concern about the implications if Andersen’s practices arepicked up piecemeal by local or international firms.

If parts of Andersen were sold off to other major accountancy firms on a local basis this ‘could justify an inquiry’ but each case would be judged on its own merits, the official said.

The Commission has already insisted that it has the right to intervene whena merged firm’s world-wide turnover exceeds ? ¬5bn, of which more than ? ¬250m is in the EU. Some deals involving Andersen, the subject of continued speculation, would fit this description.

A spokeswoman for the European competition commissioner Mario Monti saidthe Commission remained concerned about any reduction in the number of worldwide accountancy firms noting that in 1998 it effectively blocked a deal between KPMG and Ernst & Young that would have reduced the number of major players from five to four.

The Commission indicated privately last month that the proposedAndersen/KPMG merger would have been subject to a formal investigation bythe competition authorities in Brussels.

Related Articles

British Accountancy Awards 2018 – entries open!

Accounting Firms British Accountancy Awards 2018 – entries open!

2w Emma Smith, Managing Editor
Is the accountancy sector facing an international talent crisis?

Accounting Firms Is the accountancy sector facing an international talent crisis?

2w Lewis Silkin
RSM appoints new Chief Operating Officer

Accounting Firms RSM appoints new Chief Operating Officer

2w Alia Shoaib, Reporter
RSM announces 11 partner promotions

Accounting Firms RSM announces 11 partner promotions

3w Emma Smith, Managing Editor
BDO hires former AstraZeneca creative director as head of digital and innovation

Accounting Firms BDO hires former AstraZeneca creative director as head of digital and innovation

1m Emma Smith, Managing Editor
What does the future hold for listed accountancy firms?

Accounting Firms What does the future hold for listed accountancy firms?

1m Fergus Payne, Lewis Silkin
EY, Deloitte lead Big Four in gender pay gap reporting

Accounting Firms EY, Deloitte lead Big Four in gender pay gap reporting

2m Emma Smith, Managing Editor
Mind the gap: what accountancy firms should be doing ahead of the new gender pay gap reporting rules

Accounting Firms Mind the gap: what accountancy firms should be doing ahead of the new gender pay gap reporting rules

2m Karen Baxter, Lewis Silkin