KPMG UK and Switzerland announce $4.4bn merger
With a wider geographic coverage, the new firm will be able to expand its service and sector expertise complementing the already deep local market understanding for its national and international clients
KPMG UK and KPMG Switzerland have voted in favour of merging their partnerships and will become a new $4.4bn (£3.4bn) business, working across audit, tax and legal, and advisory.
The merger will make the firm the second largest in the KPMG network by some distance.
Both firms enter the merger from positions of strength as growing, profitable businesses in their respective home markets and have a long and strong history of working together for multinational clients.
To meet clients needs, both firms said they will bring their “complementary strengths and technology solutions together” to enhance the range of services offered across audit, tax and legal, and advisory. With a wider geographic coverage, the new firm will be able to expand its service and sector expertise complementing the already deep local market understanding for its national and international clients.
The merger will see KPMG establish a new limited liability partnership (LLP) bringing together the two firm’s equity partners. The new LLP will own the existing UK and Swiss firms.
Jon Holt, chief executive and senior partner of KPMG UK, will lead the new partnership as group CEO with Stefan Pfister, current CEO of KPMG Switzerland, as group deputy CEO of the combined firm.
A new group executive committee will be formed by existing UK and Swiss senior leadership. It will have decision-making responsibilities for the larger partnership and will be responsible for driving sustainable long-term growth in both markets.
There will be a group board of the Holding LLP – which will be the ultimate governing body for the new partnership. It will have an Audit and Risk Committee, Remuneration Committee and a Nomination Committee.
KPMG Switzerland and KPMG UK will remain separate firms governed by the respective national laws and supervision. The separate management committees for each firm will continue to operate, being responsible for the day-to-day operation of the business and implementing the group strategy.
Regarding the merger, Holt said: “This marks a historic moment for both firms. We will be stronger as one combined firm and together we will have the scale to significantly enhance our ability to deliver great outcomes for our clients both internationally and within our domestic markets. Merging brings huge benefits for our clients, our people, and our partnership and means we can now grow faster, be more profitable and invest together to create new services in a sustainable way.”
Pfister added: “Both partnerships have made an important decision today, which will evolve and future proof our firms for the global business challenges ahead. Together we will be more agile and can bring the best of KPMG’s multidisciplinary model and sector expertise to clients nationally and internationally while at the same time maintaining our local market understanding and execution power.”
