PracticeConsultingBig Five – KPMG set for client losses

Big Five - KPMG set for client losses

Firm could lose two audits as clients discuss mergers.

Merger activity in the oil and financial services industries could lose KPMG two major audit clients, it emerged this week.

The firm will be comforted, however, by winning the lucrative audit contract for newly merged property giant Jones Lang LaSalle in the US.

Formed by a link-up between Jones Lang Wootton, a private UK business owned by partners and staff, and US-based LaSalle Partners, the company will have 6,000 employees in 34 countries.

In a blow to the firm, though, a senior source within the finance department at fund manager M&G Group confirmed that the takeover of the company by Prudential would be a ‘catalyst’ for a review. PricewaterhouseCoopers, the auditor of Prudential, has emerged as a likely candidate to take over the chief auditor role.

The source said: ‘We have been with KPMG since 1993, so it is probably about time for a rethink. We would be very surprised if being part of Prudential did not prompt some movement.’

He added that PwC already works with the company on a number of M&G’s unit trusts and a decision could be made over the next year.

The Prudential’s corporate finance manager David Doyle said that, with the current plans, it was hoped the deal would be completed by June. He added that, although it was too soon to consider M&G’s auditors, it would be a matter for consideration.

In the oil industry, the prospect of a beauty parade between KPMG and Ernst & Young moved a step closer last week as Enterprise Oil confirmed it was still in merger talks with rival Lasmo. A merger would create a combined oil group valued at around #2.3bn. Enterprise uses KPMG, while Lasmo is an E&Y client.

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

3m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

9m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

10m Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

11m Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

11m Stephanie Wix, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

10m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

10m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

11m Kevin Reed, Writer