Grant Thornton’s Hong Kong firm is to leave the network and has agreed to merge with rivals BDO, cementing BDO’s position as the fifth largest firm on the island.
Grant Thornton International today announced its Hong Kong member has six months to pack up and leave while BDO confirmed the firms had agreed in principle to tie the knot.
BDO said a merger with Grant Thornton’s Hong Kong firm will create an entity that has more then 1,000 staff and 50 partners, serving at least 200 local and international clients. In 2009, the International Accounting Bulletin reported that Grant Thornton Hong Kong had 500 staff and generated annual revenue of H$300 million ($38.7 million). It is understood BDO’s Hong Kong firm is even larger.
“BDO provides a well established structure and support, in particular with its capabilities in China, for us to further develop our business. And, going forward, the enlarged practice would be well placed to provide a stronger service platform in both Hong Kong and China and further enhance our position in the market,” Grant Thornton Hong Kong chief executive Patrick Rozario said.
Grant Thornton International told the International Accounting Bulletin the departure of the Hong Kong firm is because the firm’s strategy does not fit with Grant Thornton International’s plans to have one firm represent the network across Mainland China.
In line with this approach, Grant Thornton International recently decided to change the network’s representation in Germany from a federation of firms to single firm representation.