BDO International Chinese member firm BDO Li Xin is to merge with ‘a significant’ part of PKF China, with completion of the deal expected by the end of the year.
The announcement follows news last week that BDO and PKF are to merge in the UK by early 2013.
According to BDO International approximately 350 PKF partners and staff have joined BDO China, augmenting the network’s position in Beijing, Shenzhen and Wuhan.According to data from the latest International Accounting Bulletin China survey, however, the merger will leave PKF with more than 1,500 staff at the firm’s remaining offices in China. In 2010 PKF China joined forces with China’s sixth largest domestic CPA firm, Daxin, adding about 1,500 staff and $90min fees to PKF China.
PKF International is yet to respond to the announcement and provide revised revenue and staff number figures.
Jiandi Zhu, managing partner of BDO in China and a recently appointee to the BDO global board, said: "The combined expertise of our partners and staff with State-owned enterprises, as well as with listed companies – including H-share businesses – will build upon our approach as well as our position in these market segments.
"Furthermore, backed by the high standards, global systems and quality service delivery for which the international BDO network is known, we can continue to support the international expansion of our clients, as well as their domestic success," he added.
Martin van Roekel, chief executive of BDO International, said: "I am extremely pleased by the positive outcome of our discussions with this addition to BDO China, as such a joining of forces not only strengthens BDO’s position but will contribute to our future growth in China." "Of course, this news follows on from the announcement earlier this week by the BDO member firm in the UK that they are in advanced discussions to merge with PKF UK early next year, cementing our position as the largest international accounting organisation focused on the mid market".
The departure of the UK firm will leave a gap of around £140m and over 1,600 staff in the PKF International network, while the partial departure of Chinese partners is likely to make a dent in PKF China’s revenues, which totalled $132m for year ended 30 June 2012.