KPMG and Andersen confirm may combine forces outside the U.S. The two accounting giants have confirmed merger discussions.

The transaction is under negotiation. “Any transaction will be implemented through combinations of relevant member firms around the world, each of which will require appropriate approvals from local partners and regulatory authorities,” say the firms in a joint statement.

The firms are considering possible combinations for their operations throughout Canada Europe, Africa, Middle East, Asia and Latin America. Combination have to be complementary in terms of geographic coverage and industry experts.

“Any such combination would create a global network that can continue to provide outstanding service in every part of the world and represents an outstanding opportunity for our partners and people,” says Aldo Cardoso, chairman of Andersen Worldwide.

Inn an initial attempt to defray worries inspired by the Enron scandal Andersen also stated that as a firm it is “committed to moving forward with reforms that will create higher standards and restore the public’s faith in Arthur Andersen and the public accounting profession.”