International accountancy firm Deloitte Touche Tohmatsu is planning to merge with Hong Kong's most powerful local Chinese firm, Kwan Wong Tan & Fong (KWTF), in a move set to create the territory's dominant professional services force.
A senior partner of Deloitte, Dermot Agnew, confirmed yesterday the firm had signed a conditional letter of intent with KWTF to merge their practices in Hong Kong and China.
The proposed merger would see many of Hong Kong's top listed companies - including Cheung Kong Holdings, Sun Hung Kai Properties, Henderson Investment, Sino Land and Hopewell Holdings - come under the enlarged Deloitte's umbrella as audit clients.
The new accounting powerhouse is also set to have close links with a number of leading listed and unlisted red chip groups - including the Bank of China - through KWTF's extensive local connections.
While the two parties have agreed on the joining of their practices, discussions about the final terms of the deal are continuing, Mr Agnew said.
The talks between the two firms have been under way for some time, he said.