South Africa’s branches of accounting firms KPMG and Andersen were given an all clear to merge by the Competition Authority on Sunday.
In terms of an agreement between KPMG and Andersen, all Andersen’s assets and 555 employees will be absorbed by KPMG from June 1. Andersen will continue to serve its clients but now as KPMG.
KPMG senior partner Tom Grieve said the deal was in the best interests of all stakeholders, ”particularly following the recent period of profound uncertainty in the profession”.
”We can now move forward with vigour and confidence and embrace the opportunities which this transaction presents to us,” he said.
Andersen country managing partner Daryll Jackson said the firm made a very positive and synergistic fit with KPMG.
”We are once again in a position to provide our clients, who have been wonderfully supportive, with ‘best-of-breed’ global services,” he said.
According to a statement from KPMG the intention was to complete this merger process in as short a timeframe as possible so that the new firm’s enlarged resources could be fully directed towards adding value to its prestigious client base.
KPMG in South Africa will remain under the chairmanship of senior partner Grieve, with Moses Kgosana — previously of KMMT, with whom KPMG completed a full merger on 1 April 2002 — as deputy chairman.
Jackson will head up the advisory services line of business of the enlarged firm and joins the KPMG executive committee, together with Danie Folscher who will be managing partner of the tax and legal practice.
KPMG said all employees would be physically integrated over the existing two office locations in Johannesburg into single offices in Cape Town, Durban and Port Elizabeth.
”The uncertainty that had been facing us is now over and it is time to move on. Our deal with KPMG gives us the fullest opportunity to do just this,” Jackson said. – Sapa