EY has acquired branch counterpart KPMG in Denmark. Approximately 1,500 employees, including 150 partners, across 21 offices will transfer to EY. The acquisition can be called striking. KPMG is the number 3 player in Denmark, looking at revenues, and competitor EY was number 5 before the takeover.
In a statement, Global Chairman Michael Andrew of KPMG says: “I can confirm that our Danish member firm has decided to leave the KPMG network.” Yet the deal is still subject to approval of the supervisory authorities. Until all conditions are met and the necessary regulatory approvals are received, it will be business as usual for both organizations.
Due to the ‘acquisition’, KPMG remains empty-handed in Denmark. According to Andrew, there is a chance that some employees still choose to remain at KPMG. “We believe that a number of non-equity partners and staff will make the positive choice to remain with KPMG.” He also announced that Denmark remains part of the proposed future strategy for KPMG, despite the fact that they have to rebuild the company from scratch. “We remain committed to having a strong, effective and focused firm in Denmark, that can serve local and global clients and provides the market with the choice of at least four large professional service firms."
According to Regional Managing Partner of EY Nordics Mamelund Erik, is the agreement based on the complementary strengths of EY and KPMG in Denmark.
Consulting market Denmark
The Danish accountancy and consulting market has been very turbulent, in recent years. PwC merged with Grant Thornton Denmark in 2011, after which Grant Thornton also incorporated PKF Kresten Foged. Likewise in 2011, Baker Tilly Denmark bought KPMG Randers, one of the activities of KPMG in Denmark.