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New York (April 25, 2002) -- Andersen's foreign units have entered into a string of deals with Ernst & Young this week, expanding the growing list of offices that have left the ailing firm's global network.E&Y, which has already picked up a number of Andersen's overseas units, struck deals this week with Andersen practices in Finland, Luxembourg, Malaysia and The Philippines. The firms expect to begin combined operations in Finland on July 1, under the name Ernst & Young. Andersen employs about 150 people in Finland. E&Y's staff there number 310.
The firms also expect to combine operations July 1 in the Philippines, where they employ a total 2,000 professionals, under the name SyCip Gorres Velayo & Co.
Hanafiah Raslan & Mohamad, Andersen's national firm in Malaysia, signed a memo of understanding Tuesday to join E&Y there. The combined firm will operate under the Ernst & Young banner, with over 2,500 employees. The firms also reached an agreement in principle Tuesday to form an alliance in Luxembourg, where they together employ almost 600 people.
Andersen also reportedly plans to hook up with E&Y in Germany. The firm's German partners opted to join with Ernst & Young over a merger with KPMG Germany, according to a report Wednesday by Reuters. Ernst & Young partners are set to vote on the deal on April 27, the report said. The merger will create a firm with 7,500 employees and revenues of almost 1 billion Euro ($892 million), Reuters said.
-- Electronic Accountant Newswire staff
