Dundas & Wilson and Bircham Dyson Bell have ended their merger discussions after deciding against a combination.

The firms announced today (10 October) that they have concluded exploratory discussions about a tie-up after mutually coming to a decision not to seek partner approval for a potential merger.

The firms said in a joint statement: "Dundas & Wilson and Bircham Dyson Bell have concluded their talks and have decided not to pursue a merger of their two firms. Collaboration on individual projects, particularly in the area of major infrastructure and energy projects, will continue."

Dundas managing partner Donald Shaw (pictured) added: "We hold one another in high regard and are naturally disappointed that serious and worthwhile discussions between us have not been more fruitful. However, as we stated, these were just steps to establish whether our previous successes in collaborating on client matters could be further developed by integrating our practices."

Bircham managing partner Guy Vincent said: "Combining two well-established and successful firms is always challenging even when, as is certainly the case here, there is substantial goodwill and business potential.

"Both firms have independently and jointly concluded that, due to differences in their operating models, the downsides outweigh the potential upsides. Although we will not be merging, we remain on excellent terms and look forward to working together on appropriate projects."

The firms first confirmed that they had held discussions about a formal tie-up last month (20 September).

For Dundas, which has offices in Edinburgh and Glasgow, a combination could have bolstered its London presence, which it has previously set out an intention to grow. The Scots firm is the UK's 49th largest law firm after seeing turnover rise 1.6% during the 2010-11 financial year to £62m, alongside a 2.5% increase in profits per equity partner (PEP) to £325,000. The firm has around 280 lawyers and approximately 80 partners.

Bircham, a single-office firm based in London's Westminster, has around 170 lawyers including almost 50 partners, and reported revenues of £31.9m for 2009-10, when PEP stood at £232,000.