British law firm, Allen & Overy, is planning a merger with American legal giant, Shearman & Sterling. The deal, which is mooted to be worth around $3.4bn (£2.7bn), will be one of “the biggest transatlantic legal deals in history”, according to The Guardian newspaper.
“[The deal] supercharges our ability to serve clients in the US market, which has long been a strategic priority,” Wim Dejonghe, the senior partner at A&O told the paper. “Both firms have a history of excellence, and together we think A&O Shearman will be a firm unlike any other in the world.”
The planned merger comes after merger talks failed between Shearman & Sterling and another huge player in the British law scene, Hogan Lovells.
In a combined statement, Shearman & Sterling and Allen & Overy claim that the merger will deliver “the only global firm with U.S. law, English law, and local law capabilities in equal measure.” The new venture will have around 3,900 lawyers across 49 offices and approximately USD3.4bn in combined revenues, it adds.
Adam Hakki, Senior Partner at Shearman & Sterling, said: “This is truly a game-changing moment for both firms that will create an unparalleled offering for our clients. It is also a fantastic opportunity for our people to be part of a transformative transaction and an institution of such significance, and we look forward to recruiting even more stellar talent in the coming years.”
The deal will be put to a vote by the partners at both firms but is hoped will be completed within a year.
