The financial and professional services provider RSM and the tax advisor PricewaterhouseCoopers have decided to merge their tax practices effective April 1.
The combined operations will be under the common brand of PricewaterhouseCoopers. Officials at RSM refused to give financial details. Mr Rathin Datta will continue to be the Chairman and CEO of PricewaterhouseCoopers, while Mr Dinesh Kanabar, Deputy Managing partner, RSM, will be the Chairman of the combined tax practice. The combined operations will have more than 4,000 people across offices in India.
Mr Rathin Datta said, "A merger particularly in the services sector is more like a marriage." He clarified the integrity of the combined firm will be maintained by bringing the human resources together and providing them comfort. "My assets are all walking assets," said Mr Datta. According to Mr Ashok Wadhwa, Managing Partner of RSM, "Collaborative growth is the best way to grow in a competitive market. Either you consolidate or you fail."
Our Delhi Bureau adds:
The merger of RSM's tax and audit practices with those of PricewaterhouseCoopers (PwC) would help strengthen the international focus of the combined practices, the Chairman and CEO of PwC in India, Mr Datta, has said.
"RSM has a strong tax team. With more Indian companies starting to invest abroad, the opportunities on taxation side is expanding. This merger will strengthen our international focus," said Mr Datta, when asked about the strategic intent behind the merger transaction.
With about 500 people of RSM's tax and audit practices set to move over to PwC from April 1, the combined strength after the merger would increase to more than 4,000 people across different offices in India.
`Merger of businesses'
"This is a merger of two businesses and not two entities. The merger process that would be adopted is the simplest of all processes. All the 500 people from RSM (150 in audit and 350 from tax practice) would quit that firm and move over to PwC," he said.