KPMG Netherlands is poised to join KPMG Europe, reversing a decision to pass on the merger last year. Dutch partners will soon team up with colleagues in the UK, Germany, Switzerland and Spain to create the largest fully integrated firm in Europe.
Over the coming months, the firm will begin its accession to KPMG Europe with a formal announcement expected in December.
KPMG Netherlands chairman Herman Dijkhuizen said the combination was motivated by the increasing internationalisation of clients and the need for a seamless, cross-border service.
Dijkhuizen said joining KPMG Europe would benefit the firm’s employees by providing opportunities for staff to work in other countries and learn about different cultures.
KPMG partners in the Netherlands narrowly voted against joining KPMG Europe last September. At the time, former KPMG Netherlands leader Ben van der Veer noted that merger discussions were by no means over and the proposal could be revisited in due course.
Dijkhuizen told the International Accounting Bulletin in August that the firm wanted to expand geographically. Sources from within KPMG predict more European firms will join in the future.
KPMG Netherlands is the third-largest firm in the country with fee income of €681 million ($912.7 million) in the year ended September 2007. The firm will add about 2,700 professionals to KPMG Europe.
This month, KPMG Switzerland effectively merged with KPMG Europe shortly after the Swiss firm was registered by the Federal Audit Oversight Authority.
KPMG Switzerland had previously stated its intention to join the pan-European firm but execution of the merger had been held up by the introduction of a new Swiss regulatory regime this year.