Cuatrecasas' Portuguese arm, Goncalves Pereira Castelo Branco & Associados (GPCB), is in merger talks with local firm Luiz Gomes & Associados to create a 100-lawyer practice in the latest combination in the consolidating Iberian market.

The 85-lawyer GPCB is currently in discussions with 16-lawyer Luiz Gomes, which specialises in dispute resolution and works from a single base in Lisbon.

The move would add to GPCB's domestic coverage following its 2001 tie-up with Spanish giant Cuatrecasas which, despite being billed a merger, maintains separate branding.

A spokeswoman told Legal Week that the firms were "still in negotiations so could not comment".

GPCB, which has an office in Mozambique, is best known for its local corporate and tax practices and has a client list that includes Deutsche Bank, BMW and IBM.

The talks are the latest in a string of law firm mergers in the Iberian market. Last year saw Morais Leitao J Galvao Teles & Associados merge with Miguel Galvao Teles Joao Soares da Silva & Associados, and Vieira de Almeida & Associados come close to tying the knot with tax specialist Servulo Correia & Associados.

In addition, Spanish heavyweights Uria & Menendez and Garrigues secured mergers with local firms Vasconcelos F Sa Carneiro Fontes & Associados and Leonidas Matos & Associados respectively.

Despite heavy investment in Spain from a host of leading UK advisers, Simmons & Simmons and Linklaters are the only leading City practices to launch standalone offices in Portugal.