KPMG /Andersen France merger collapses
KPMG has suffered another blow to its plans to acquire Andersen's leading European practices, after announcing an end to discussions with Andersen France.
Last week, KPMG suffered a massive blow to its European merger plans after losing out to Deloitte & Touche for Andersen UK, while earlier this month it lost out to the same firm for the Spanish office.
Andersen has already held talks with Deloitee and KPMG in France. After securing deals in the UK and Spain, Deloitte will now be favourite to link up with the practice.
The collapse of the Paris talks was confirmed today by Mike Rake, chairman of KPMG in Europe, the Middle East and Africa, who said the firm was ‘naturally disappointed that a deal could not be completed’.
‘We consider that our offer was both good and fair for Andersen people and clients, given the difficult circumstances,’ he said.
‘We have only been willing to offer agreements which we are sure would protect our firm, our people and our clients from the potential liabilities of Andersen Worldwide, and maintain the reputation of KPMG with its clients and in the business community generally.’
Rake said that in a number of countries similar arrangement had been concluded where KPMG was protected from potential Andersen liabilities relating to the collapse of Enron. These so far include Andersen South Africa, Andersen Japan and the Andersen’s Pacific North West practice in the US.