However, KPMG’s statement leaves it unclear whether it is pushing ahead with the planned merger with all Andersen operations outside of the US.
Reports in the press suggest the merger is off but this afternoon KPMG partners were meeting to discuss what would happen next.
Losing Andersen’s lucrative Spanish operation will come as a blow to KPMG which saw the office, not only as a prize in its own right, but as a crucial gateway to the crisis stricken firm’s South American business.
A statement from KPMG said: ‘We have been engaged in discussions in Spain and many other countries on a very constructive basis. We are naturally disappointed that the Spanish firm of Andersen has decided to go to Deloitee & Touche.
‘We continue to have very constructive discussions elsewhere.’
The future of Andersen in the UK remains unclear.
Andersen in Hong Kong and China have gone to PricewaterhouseCoopers while operations in New Zealand, Australia and Singapore have gone to Ernst & Young.
The danger for KPMG is that Andersen Worldwide is fragmenting so fast there will soon be little left to merge with.
Stephen Mills joins the Manchester office from IBM, where he spent 12 years as an associate partner in the data, analytics and cognitive consulting group
Rupert Guppy will be responsible for capital allowances in the southern region, and joins the firm from specialist consultancy E3 Consulting
Richard Lewis has been appointed to the firm's restructuring and recovery services team
As KPMG celebrates its annual inclusion week, Anna Purchas, head of learning at KPMG in the UK, discusses why investing in talent is a priority for the firm