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
Grant Thornton expands in China
Grant Thornton pursues single firm coverage in Germany