Monday 26 August 2019 10:19 pm

Lane Clark and Peacock plots takeover of KPMG pensions arm

Lane Clark and Peacock (LCP), one of the UK’s largest independent financial consultancy firms, is preparing a £200m takeover of KPMG’s pensions advisory arm.

The company, which is backed by buyout firm Inflexion, is among a small group of bidders that have made it through to the second round of the auction, Sky News reported. 

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LCP was competing against a number of trade and financial bidders, the broadcaster said, citing sources. 

KPMG’s division has around £50bn under advice and advises corporate clients and companies’ pension trustees. Around 20 partners work within the business. 

The accountancy giant began to examine a sale of its pensions advisory arm in June following a number of approaches. The move follows attempts to reduce the big four accountancy firms’ consulting work for audit clients. 

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In June, Sky News reported that the decision to explore a potential sale was not a direct result of KPMG UK chairman Bill Michael’s move to ban the firm from taking on both consulting and auditing work for the same company. 

However, it comes amid increasing regulatory pressure on the big four  – which also includes Deloitte, EY and PwC – to reform the structure of their businesses.