Ernst & Young Gets Go-Ahead to Acquire Andersen Germany | AccountingWEB

Ernst & Young Gets Go-Ahead to Acquire Andersen Germany

International accounting firm Ernst & Young has received clearance from the European Union (EU) to proceed with its acquisition of Andersen Germany. The EU had expressed concerned about giving the combined firm a competitive edge among the remaining international accounting firms, but concluded this week that "the merger would not lead to competition problems in this market, given the strong position of the market leaders KPMG and PwC."

The new company will be called Ernst & Young Germany and will have 7,000 employees. The company is expected to have annual revenues approximating $875 million.

At one time it appeared that the Andersen Worldwide operation would be absorbed, en masse, by one of the competitor Big Five firms, but as the Andersen's U.S. obstruction of justice trial proceeded through the Spring months, the firm began disintegrating piece by piece, with all of the rival firms grabbing for various parts of the whole.

At present, E&Y has plans to merge with Andersen firms in 37 countries. Many local branches of Andersen announced plans to sell, merge, or split apart throughout the Spring this year. Some of those initial announcements have already been finalized, others are awaiting regulatory approval in various countries.

Wait, there's more!
There's always more at AccountingWEB. We're an active community of financial professionals and journalists who strive to bring you valuable content every day. If you'd like, let us know your interests and we'll send you a few articles every week either in taxation, practice excellence, or just our most popular stories from that week. It's free to sign up and to be a part of our community.
Premium content is currently locked

Editor's Choice

As part of our continued effort to provide valuable resources and insight to our subscribers, we're conducting this brief survey to learn more about your personal experiences in the accounting profession. We will be giving away five $50 Amazon gift cards, and a $250 Amazon gift card to one lucky participant.
This is strictly for internal use and data will not be sold
or shared with any third parties.