Two Chinese firms - belonging to RSM International and Crowe Horwarth International - have merged in China, but have requested that the merged firm, Ruihua China CPAs, still remain a member of their original networks.
The boards of RSM International and Crowe Horwarth international have yet to make a decision as to whether they will allow the new firm - with a combined revenue of RMB 2.8bn (£295m), 334 partners and 9,000 staff members in 38 cities in China - to remain part of their networks, in what would be an unprecedented move.
Yang Jiantao, principal partner of Crowe Horwarth China, and Gu Renrong, principal partner of RSM China, will be the managing partners of Ruihua China CPAs.
In a joint statement, the international network firms underlined that the request by Ruihua China CPAs to belong to both networks is specific to China, and in all other markets RSM and Crowe Horwarth will remain mutually respectful competitors.
RSM International chief executive Jean Stephens said that the merger creates one of China's largest accountancy and advisory firms in this strategically important market.
'Having significant presence and depth of capabilities is essential to RSM and our member firms globally. The merger with Crowe Horwarth China will mean that current and future clients, and other member firms in the RSM network, will benefit from the substantially increased scale and capability of the new firm. We look forward to supporting the continued success of the team in China,' said Stephens.
Kevin McGrath, chief executive of Crowe Horwarth International, said the merger provides a historic opportunity to establish a domestic national practice to respond to national and international client needs, including those of the Chinese government and its agencies.
'The merger with RSM China will create a firm of greater scale and capability thereby fulfilling the combined firm's vision of further developing the international focus of its people and the clients they serve. Many of the member firms in the Crowe Horwarth network have clients with interests in China and this merger will prove very beneficial to us on a global scale,' said McGrath.
