KPMG Europe is to expand to 13 members
with the addition of KPMG CIS (Commonwealth of Independent States)
and KPMG Turkey after partners in seven countries voted to join the
pan-European grouping.
The combined European firm will have 30,000
partners and staff working from more than 100 offices – with net
revenues of €4.6 billion ($6.5 billion), according to combined 2008
figures.
KPMG CIS, which consists of Russia, Ukraine,
Kyrgyzstan, Kazakhstan, Armenia and Georgia, approved the merger
proposal in a vote last month. The firms are waiting on local
regulators to authorise the move before they officially join KPMG
Europe. They will join KPMG firms in the UK, Germany, Belgium, the
Netherlands, Switzerland and Spain.
The Turkish firm approved the merger process
in a separate vote and will officially join the network from 1
October.
The expansion appears a vindication of the
decision by KPMG Europe’s founding members, the UK and Germany, to
combine operations. KPMG Europe joint chairman John Griffith-Jones
said although the firms were yet to officially become part of the
Europe grouping, on a practical basis they were already operating
as members.
KPMG CIS offers the full range of KPMG
services and grew from €105 million in 2006 to €210 million in 2008
– the Russian firm’s revenue accounts for about 85 percent of total
CIS 2008 fee income.
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By GlobalDataThe Turkish practice has grown 121 percent
since 2006 from $19 million to $42 million in 2008, although this
is expected to dip in 2009. Griffith-Jones said KPMG Europe sees
tremendous potential in Turkey and the CIS, describing both as
“under accounted markets”.
“Turkey is a high-growth market, and that is
one of the reasons why KPMG Europe are so keen to involve some of
the high-growth countries on the eastern end of Europe,” he
said.
Ferruh Tunc, KPMG Turkey chairman and senior
partner, added: “There is an important change planned for 2010,
which will require auditor rotation in Turkey and this will
generate significant opportunities for us, which this merger will
help us to maximise.”
