Cliffe Dekker, the South African ally of DLA Piper, is to merge with local rival Hofmeyr Herbstein & Gihwala, in a deal that is set to create the country's largest law firm.

The combined firm will operate as Cliffe Dekker Hofmeyr from September, boasting 127 partners in Johannesburg and Capetown. It is thought the combined practice will be the largest law firm in South Africa, with Cliffe Dekker contributing 65 and 62 hailing from Hofmeyr.

The firm will continue Cliffe Dekker's exclusive referral relationship with DLA Piper, which was formed in 2005.

Cliffe Dekker chairman Chris Ewing will become the chief executive of the new firm, while Hofmeyr chairman Dines Gihwala will take over as chair of the combined practice.

The firms said the decision to merge was taken due to client demand for a larger, full-service firm to cover all of their needs.

The news marks the second merger for Cliffe Dekker in the last two years. In July 2006 the firm combined forces with six-lawyer practice Jeftha Twala. Hofmeyr was created in September 1997 by the merger of legacy firm Hofmeyr Herbsteins and Cape Town-based Gihwala Abercrombie.

Gihwala commented: "We are two top-tier firms and the decision to merge is a natural fit supported by complementary visions, growth objectives and no major conflicts of interest."

Ewing added: "In terms of directors, our research shows that we will be the largest law firm in the country and gives us deep industry skills as well as the capacity to further specialise and develop our service offering, while ensuring that clients benefit from our strengthened capabilities, diversity and services, locally and internationally."