Canadian Affiliates of Ernst & Whinney To Merge With Peat Marwick
Aug. 24, 1989
TORONTO (AP) _ The Canadian affiliates of the U.S. accounting firm Ernst & Whinney on Thursday spurned a merger with Arthur Young & Co. and joined up instead with another firm.
Thorne Ernst & Whinney and Peat Marwick said they had agreed to merge into a firm to be called Peat Marwick Thorne.
Accounting industry analysts had said the Canadian partners of Ernst & Whinney and Arthur Young were among the few holdouts against the worldwide merger announced in May.
The two firms had agreed to combine in a firm with worldwide revenue of $4.2 billion and domestic revenue of $2 billion. That deal - which was approved by most of the firms' worldwide partners - is completed and the new firm, Ernst & Young, formally begins operations Oct. 1.
The new Canadian accounting firm will have offices in 61 cities across the country with 800 partners and 5,600 employees, the firms said in a statement.
Combined annual revenue based on 1988 figures is 439 million Canadian dollars, ahead of the 379 million Canadian dollars for another pair of companies that have also proposed a merger, Deloitte-Samson and Touche Ross.
Peat Marwick's clients in Canada include Campeau Corp., Xerox's Canadian operations and the developing giant, Bramalea Ltd. Thorne brings such firms as Conrad Black's Hollinger Inc., the Bank of Canada and Thomson Newspapers to the partnership.
The two Toronto-based accounting giants also agreed to merge their consulting arms, which provide expertise on such matters as corporate mergers and acquisitions.
The new consulting partnership will be known as Peat Marwick Stevenson and Kellogg.
The two firms' partners will be asked to approve the mergers within two weeks.