The agreement with Andersen Germany comes after an announcement Friday by Ernst & Young that the firm will also absorb Andersen in Greece.

Ernst & Young has agreed to merge with Andersen operations in 37 countries, including France and Switzerland in Europe, Australia and Singapore in Asia, and Argentina and Chile in South America.

Together, Andersen and Ernst & Young in Germany will create a firm with more than 7,000 employees and revenues of about €900 million ($811 million). The transaction is described as a merger of equals, although the combined firm will go by the name of Ernst & Young.

Partners of Andersen Germany approved the merger Wednesday, and the E&Y partners approved the deal Saturday. Andersen's legal arm in Germany, Andersen Luther, will become part of the Ernst & Young law network.

Andersen's regional offices have been scrambling to do deals with other firms following the indictment by the U.S. Department of Justice in March of Andersen's role in the collapse of Enron Corp. and in the face of possible litigation from shareholders of Enron.