Shearman & Sterling is set to open its second office in Italy with the addition of a presence in Milan to its existing Rome base.

Shearman is setting up the new office, due to open in January 2010, with the relocation of two Rome-based partners – corporate partners Tobia Croff and Fabio Fauceglia. The US firm will also transfer a number of associates who currently work in the Rome office.

The firm said that the Milan partner duo would continue to work closely with Rome managing partner Michael Bosco and Rome-based partner Domenico Fanuele.

European managing partner Creighton Condon said: "We believe the market for Italian law transactional work is expanding. Northern Italy is one of the most dynamic economic environments within the country. We already have a strong client base in Milan and, with our new office, we will be even better placed to support clients in Milan and Rome with their domestic and cross-border work."

The firm's Italian lawyers offer dual Italian and US law capability, focusing on M&A, international joint ventures, equity and debt offerings, privatisations and general corporate work as well as bank finance, restructuring and real estate.

Shearman first entered the Italian market with a presence on the ground in 2002, when it launched its Rome office. A number of US firms have Italian offices, including Cleary Gottlieb Steen & Hamilton and Latham & Watkins.