City partners banking on further growth in 2011; energy and financial services predicted to lead the way

Freshfields Bruckhaus Deringer and Linklaters have topped Mergermarket's European deal rankings by value and volume respectively for 2010.

The rankings show Linklaters reclaiming the top spot by volume last year from Freshfields, with roles on 203 deals worth a total of $157.3bn (£101bn). Freshfields held on to the top of the table by value with roles on 179 deals worth $230.5bn (£148bn).

While Linklaters increased its tally of European M&A transactions over the calendar year compared with 2009, both firms saw the total value of their deals fall marginally, despite the overall value of European M&A increasing by 40% year-on-year to $644.2bn (£414bn). Freshfields had roles on three of the 10 largest global deals of 2010 according to Mergermarket, with Linklaters picking up two roles on the largest deals.

Mergermarket's trend data shows the increase in deal values in Europe came against a 25.6% lift in volumes to 4,625 deals. The rebound in European M&A from the post-credit crunch low of 2009 means deal value and volume across the continent in 2010 were still only roughly in line with pre-boom 2004; however, City partners are confident that 2011 will see further growth.

Linklaters corporate partner Charlie Jacobs (pictured) said: "We were pleased with our performance but the trend data over a few years is more interesting. I think you will see M&A coming back and getting bigger in 2011. Many CEOs haven't done much in recent years and will be starting to look at doing some deals."

Allen & Overy's (A&O's) global co-head of corporate, Andrew Ballheimer, added: "I think 2011 will continue to bring a gradual improvement in activity levels. We will see an increased trend for foreign buyers in the M&A market, especially from the emerging markets. Those corporates that have cash will do more cross-border deals, especially in Asia."

Partners predict a continued influx of deals in energy and financial services, in keeping with 2010 when energy held a 25% share of the European deal market and financial services an 11.5% share.

Freshfields London corporate head Mark Rawlinson said: "Like last year I think there will be a lot of deals in energy and power, as well as finance, consumer and media. Emerging markets will be increasingly important and there will continue to be a high proportion of cross-border deals – there was comparatively little UK on UK in 2010."

Mergermarket's rankings show DLA Piper and Freshfields topping the UK M&A tables by volume and value respectively, with DLA Piper and Skadden Arps Slate Meagher & Flom topping the global rankings by volume and value. All five magic circle firms, as well as Herbert Smith and its alliance partners Gleiss Lutz and Stibbe, rank within the top 20 globally by value, with Linklaters, A&O, Freshfields, Clifford Chance, Hogan Lovells, CMS and Herbert Smith featuring in the top 20 by volume.