Andersen Affiliate in Britain to Join Deloitte

Andersen’s British affiliate, the accounting firm’s biggest outside the U.S., will merge with Deloitte Touche Tohmatsu as Andersen tries to survive lawsuits and client defections after Enron Corp.’s collapse.

The deal is a blow for KPMG International, the world’s third-largest accounting firm, which was trying to bolster its British business by combining with Andersen to gain clients such as British Sky Broadcasting Group and Cadbury Schweppes.