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Andersen to merge with PwC on July 1 in HK, China

PricewaterhouseCoopers will absorb the Hong Kong and China practices of embattled accounting firm Andersen on July 1, the firms said in a joint statement said on Wednesday.

The enlarged firm, which will operate under PricewaterhouseCoopers' name, will have 6,000 staff, half of which will be based in eight mainland China offices.

It will have 230 partners: 110 from PwC and 35 from Andersen in Hong Kong, and 55 from PwC and 30 from Andersen in China.

"There is no immediate plan for lay-offs," said PwC's Hong Kong spokeswoman Lyanna Chan.

The Hong Kong and China units of the firms decided to merge in March. Andersen affiliates worldwide have been defecting this year after its US practice became tainted by work for collapsed energy firm Enron Corp.

PwC's Hong Kong chairman and senior partner Silas Yang will retain the same title at the combined firm.

Andersen's China managing partner Albert Ng and PwC's China chairman and chief executive Kent Watson will be named as joint managing partners of China operations.

One of Andersen's most high profile clients, the Bank of China Hong Kong, said last week it would hire PwC as its new auditor in light of the merger.

The bank, Hong Kong's second largest by assets, is delaying the release of its annual results by three months to the end of June so PwC can review auditing work completed by Andersen.

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