Andersen UK to trade under Deloitte banner
Andersen UK has made a shock announcement today confirming that it is to merge with Big Five rival Deloitte & Touche rather than KPMG as previously expected.
Under the deal Andersen will trade under the Deloitte banner with both parties eager to complete the merger as soon as possible.
John Connolly will remain chief executive and senior partner of the enlarged firm. A number of Andersen partners will join the board and executive team. It is unclear what role Andersen UK managing partner, John Ormerod will be offered.
Only three weeks ago Andersen called a press conference outlining its intention to merge with KPMG in the UK and on a global level.
It suggested the move with KPMG would be sealed as soon as possible in the UK. But, instead, partner groups of Deloitte and Andersen voted ‘overwhelmingly’ to merge.
The deal includes partners and staff in all of Andersen UK’s practice, except for Andersen Legal. The move by Deloitte in the UK, follows previous announcements that it had reached similar agreements with Andersen in Spain, Portugal, the US and Latin America.
Connolly said: ‘This is a very exciting transaction for Deloitte and our people. Clients will particularly benefit from our enhanced capabilities to advise in areas such as tax, corporate finance and human capital. Both firms have outstanding professionals and the enlarged firm will offer even greater development opportunities for all of our people.’
John Ormerod added: ‘Our clients have shown great loyalty and now have the confidence that they can be served by world class professionals with a global network to match. We see a strong cultural fit between the firms’ partner groups, and are confident that our partners and staff will prosper under the Deloitte banner.’
KPMG is understood to be talking to a number of Andersen’s national practices. However an industry insider said: ‘This must throw into question KPMG’s ability to pull off other mergers in Europe.’