PKF denies merger deal with rival

BDO, which employs around 2,000 people in the UK, including more than 100 at its Leeds office, declined to comment. A spokesman from PKF, which has a headcount of more than 1,200 nationally and has offices in Leeds and Sheffield, told the Yorkshire Post: “We have not done a deal with BDO.”

It is thought that BDO, which last recorded revenues of £284.7m, is in discussions to take over PKF, a smaller firm with a turnover of around £103m.

Meanwhile, European lawmakers are delaying the approval of proposals to break up the dominant Big Four accountancy firms so it is easier for smaller firms such as BDO to build up market share.

They want to first examine the initial outcome of the UK Competition Commission’s probe into the audit market, which is due in November. KPMG, PwC, Deloitte and Ernst & Young check the books of nearly all blue-chip companies in the world.