Accountancy merger agreed

Partners in accountancy firms Price Waterhouse and Coopers and Lybrand have approved the merger of their practices throughout the world by a large majority, according to a statement. Completion of the merger, which would create the world's largest accountancy firm with 8,500 partners and 136,500 staff, requires the approval of regulatory authorities around the world, including the European Union Commission.

In a statement the firms said "these decisions are expected to be obtained in the first half of 1998".

Formal notification of the merger was given to the EU yesterday. The various regulatory authorities are expected to examine the merger proposals closely to determine the impact of a merger on the market for accounting services, the choice available to clients and the level of fees. The outcome will be closely watched by another two of the big six international firms, KPMG and Ernst and Young, who have also announced global merger proposals.

In Ireland a combined Price Waterhouse/Coopers and Lybrand would have a fee income of about £63 million, 79 partners and 1,177 employees.

This makes it the largest accountancy firm in the domestic market.