Norton Rose has taken a dramatic step to reposition itself in the wider Asian region after securing a merger with Australian firm Deacons.

The top 10 City law firm's partnership voted on the move last night (22 June) and Deacons will become part of Norton Rose Group on 1 January, 2010.

The deal includes 146 partners across offices in Sydney, Brisbane, Melbourne, Canberra and Perth and will boost Norton Rose's headcount in the Asia-Pacific region to 700 fee earners. The firm's Singapore and Jakarta offices will also acquire teams of lawyers from Deacons.

In order to enter the agreement, Deacons Australia has terminated its 17-year joint venture agreement with Deacons Hong Kong.

After the acquisition, Deacons will rebrand to the Norton Rose Group and will continue to be led by current chief executive Peter Martyr and Deacons chief executive Don Boyd, who will become deputy group chief executive.

Newly-elected chairman Stephen Parish will continue in his role.

Deacons' Australian practice currently generates more than £100m of revenue, which will bring the combined group's turnover to £420m. The group will have around 1,800 lawyers globally.

Though the deal does not include Deacons' Asia network, the union has been touted as helping Norton Rose achieve its ambitions in the wider region, with the UK firm citing the Australian firm's substantial list of Asia clients, which include National Australia Bank and ANZ as well as several large Chinese enterprises.

Martyr commented: "We share the same global ambitions to develop our business and improve the depth and breadth of service to our clients. This move will enhance our international reach and in particular create one of the best resourced legal practices in the Asia-Pacific region.

"The economic influence in the world is moving eastwards and in order to develop our business we needed a significant expansion in our resources in the Asia-Pacific region. The increased capability of the group throughout the region will lay the foundations for further regional development and expansion."

Deacons' Boyd said: ""Everyone is very excited that this is the right thing for us to do. Norton Rose and Deacons Australia share the same business concerns and culture.

"We have shared aspirations regarding strategic growth, both in practice area terms and geographic expansion. The business case is compelling and the synergy of working together is convincing."

The deal makes Norton Rose the only City firm to secure a major merger with an Australian firm, though UK rivals such as Clifford Chance and Linklaters have previously explored such a union, with CC breaking off talks with leading Australian firm Mallesons Stephen Jaques at the end of last year.

Deacons is one of Australia's largest law firms in revenue terms, having built a well-regarded mid-tier practice in recent years.

The firms said that Deacons Australia will join Norton Rose Group, which comprises the UK Norton Rose LLP and its affiliated foreign practices, after its arrangements with its Hong Kong arm come to an end later this year.

The move has surprised many in the market, with some arguing that the benefits for Norton Rose are unclear.

A partner with one Australian firm told Legal Week: "From Deacons' point of view they gain exposure to a greater global network but I am struggling to see what it will give Norton Rose."

One partner with a top 10 City firm added: "My off-the-cuff reaction is that this is irrelevant. I don't see the synergies for a firm like Norton Rose to merge with a mid-tier Australian firm. I don't see what that really creates. Deacons doesn't have a large Asia practice so I don't really see the synergies there."