A previous merger within KPMG in Europe turned out to be a failure in 2007.
KPMG will merge its British and Swiss businesses. This creates a company with a turnover of $4.4 billion. The partners in both countries agreed to the merger on Friday. By consolidating, KPMG hopes to capitalize on larger markets and increase profits.
- KPMG UK and KPMG Switzerland will merge in October this year
- The consolidation would help bolster KPMG's weak results in the UK
- A previous merger of KPMG UK with European member firms has been dissolved due to lack of success
Merger plans have been in the works within KPMG since last year. With this deal, the struggling British tire company is trying to boost its results, which have lagged expectations for years. The merger will become a reality in October. The Swiss and British partners will be paid from a single profit pool.
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KPMG has long been trying to consolidate European country firms to combat segmentation and improve cross-border services for key international clients. In 2007, KPMG's British, German, Swiss and Liechtenstein businesses merged to form KPMG Europe, but the move was unsuccessful and was reversed.
KPMG in the UK has over 17,000 employees and a turnover of £2.96 billion (2023). Partners received an average dividend of £746,000 last year. KPMG Switzerland employs 2,600 people and has a turnover of £480 million. Briton John Holt will head the new group. Swiss Stefan Pfister, who is currently President of KPMG Switzerland, will be the second man.
