Hammonds' Hong Kong arm is set to split off from the firm in the wake of the merger agreement with Squire Sanders & Dempsey.

The six-partner Hong Kong arm told Hammonds' management last week (24 November) that it intends to separate from the firm, with the partners rejecting the merger with US firm Squire Sanders.

The transatlantic tie-up is due to go live on 1 January 2011.

As yet it is unclear when the office will formally split from Hammonds or whether the partners will form a standalone firm or try to join another firm as a team. It is also unclear what will happen to the seven solicitors in the Hong Kong office.

The decision means the newly-merged firm's Hong Kong presence will consist of Squire Sanders' four-partner, 11-lawyer office.

In a joint statement, the firms said: "As is common with large law firm combinations, even in circumstances such as ours where the vast majority of the voting partnership approved the combination, a small handful of partners in Hong Kong have taken the view that they do not want to be part of a fully integrated global firm with established offices throughout China and have decided to leave.

"We wish them well. Regardless of this, the merger has significantly strengthened our ability to serve clients across the globe, and the collective energy of our two legacy firms is focused on the successful integration across our platform, including Asia."

Hammonds and Squire Sanders & Dempsey approved the transatlantic tie-up earlier this month (7 November) after receiving the support of more than 95% of their combined partnership. All bar 17 of the firms' partners took part in the vote.

The vote paved the way for the launch of a global firm with combined revenues of around $625m (£386m) and 1,275 lawyers working across 37 offices in 17 countries.

The merged firm, which will be known as Squire Sanders Hammonds in most locations where Hammonds has a presence and Squire Sanders & Dempsey elsewhere, will be ranked in the top 25 global firms by lawyer headcount, according to the Am Law 100.