The partners of KPMG Spain have voted to merge with KPMG Europe
in a decision that will enhance one of Europe’s largest fully
integrated accountancy firms.

The move follows the lead of other European KPMG practices in
the UK, Germany and Switzerland, who have already joined KPMG
Europe. However, KPMG Netherlands partners turned down a similar
proposal late last year.

The combined firm will have approximately 23,000 partners and
staff working from 75 offices across the four countries. It will
also have combined revenues in excess of €4.2 billion ($6.5
billion), according to 2007 figures. KPMG Spain reported fee income
of €175 million in the year to September 2007.

KPMG Spain senior partner John Scott will join the KPMG Europe
board. “[Joining KPMG Europe] will increase our ability to recruit
and retain talent, will develop wider career opportunities with
more options to participate in cross-border projects and will
promote deeper knowledge sharing,” Scott said. “Consequently, our
capabilities to add value to our clients will enhance our
competitive advantage and market leadership.”

Scott said the firm’s Spanish speaking workforce would also help
KPMG Europe pursue opportunities in Latin America.

Joint chairmen of KPMG Europe Rolf Nonnenmacher and John
Griffith-Jones added: “Their decision to join builds on the
foundations formed when the UK, Germany and Switzerland member
firms agreed to merge and we are delighted that they wish to become
part of our ambition to create the most successful professional
services firm in Europe, for the benefit of both our clients and
our people. We look forward to other member firms joining in due
course.”

Partners of KPMG Spain approved the merger proposal in a vote on
20 June 2008. The vote is subject to the agreement of the UK,
German and Swiss partners. Scott said he believes several more
firms around Europe will join the firm in the coming year.

Carolyn Canham and Arvind Hickman