Addleshaw Goddard has confirmed that it is in merger discussions with Gateley's Scottish arm, HBJ Gateley.

The merger is dependent on the approval of both partnerships, which are set to reach a decision in the coming weeks.

Last Friday (11 November), Gateley confirmed that its Scottish arm, which comprises offices in Glasgow, Edinburgh and Aberdeen, would split off from the English part of the firm in May next year.

The Scottish business has been part of Gateley since 2006, when Birmingham's Gateley Wareing merged with Edinburgh firm Henderson Boyd Jackson. However, when Gateley floated on the London Stock Exchange in June 2015 – the first UK firm to do so – the Scottish offices were unable to follow suit due to regulatory restrictions in Scotland that prevent law firms taking on outside capital.

HBJ Gateley took in revenues of £21.6m in 2015-16, while Addleshaws generated £201.8m. The combined firm would have 11 offices, more than 230 partners, in excess of 1,100 lawyers and combined revenues of around £224m, placing it 15th in the UK top 50 rankings.

Addleshaws managing partner John Joyce said a deal would "enhance each firm's bench strength, give greater flexibility and provide a more robust platform from which to establish stronger market positions across core practice areas, and in the financial services and real estate sectors in particular".

HBJ Gateley senior partner Malcolm McPherson said: "There is a clear and compelling rationale behind this proposal." He added that, "exploratory talks progressed very quickly as the complementary nature of our teams and geographical presence became apparent", and that he was "quietly excited about the potential for creating something rather special".

Addleshaws previously held merger talks with Scottish firm Maclay Murray & Spens, with news of the discussions emerging in November 2015. However, the two sides were unable to come to an agreement and the talks collapsed in early 2016.

The UK top 20 firm has also held talks with US firm Hunton & Williams this year, although discussions slowed after the Brexit referendum in June, as both sides waited to gauge the political and economic fallout of the vote.

A merger between HBJ Gateley and Addleshaws would continue the trend of deals between English and Scottish firms in recent years.

CMS Cameron McKenna and Dundas & Wilson merged in 2014, in a deal that boosted the revenue of CMS's UK partnership by almost 40%. In 2012, Pinsent Masons merged with McGrigors, while Clyde & Co entered the Scottish market in 2015 through a merger with Simpson & Marwick.