Andersen merger talks break down

Accounting firms Andersen and KPMG have scrapped plans to merge their non-US businesses, saying such a deal was not achievable, it was announced today.

In a statement, the pair said: ‘‘In view of the decisions by certain individual firms to pursue different directions, it is clear that a deal embracing all of the non-US firms is not achievable.’’

However they said talks were continuing on an individual country-by-country basis.

Mike Rake, chairman of KPMG said: ‘‘Clearly we are not going to achieve a wide ranging combination.

‘‘We continue to have constructive discussions in certain territories which are important to us and where Andersen has practices of high quality.

‘‘We will not do anything which exposes us or our clients to risk or otherwise damages our reputation.’’