AAR nears Links deal as Slaughters reviews Australia strategy

Linklaters and Allens Arthur Robinson (AAR) are set to vote on an exclusive formal alliance next month, as the Australian firm's former best friend Slaughter and May reconsiders its relationships in the region.

Following ongoing discussions, Linklaters will vote on the proposed agreement at its partner conference next month, with a vote at AAR expected to follow shortly after.

The deal was discussed at AAR's partner conference in Melbourne earlier this month; however, a vote will not be taken at the Australian firm until Linklaters has held its conference in Montreux in April.

One AAR partner suggested that the pair are considering combining their Asia operations, although it is not yet clear what form this would take. Neither firm is looking for a merger. AAR has 13 partners across its Asian offices and an additional three in Papua New Guinea, according to its website. This compares with around 38 partners in Linklaters' Asia practice.

One AAR partner said: "We're still in discussions about it but the firm is not looking to do a full merger and, given Linklaters' size, it doesn't want to either. The current proposal is a formal alliance, which would be beneficial to both firms."

The news comes as Slaughters has moved to review its Australia strategy in light of the talks, as the magic circle firm has, to date, held a best friends relationship with AAR.

Slaughters has been talking to a number of other Australian independents in recent weeks about working more closely together in the event of a deal between Linklaters and AAR going ahead.

Firms that could benefit from closer ties with Slaughters include Minter Ellison, King & Wood Mallesons, Clayton Utz, Gilbert + Tobin and Corrs Chambers Westgarth.

Slaughters has also been forced to review its US relationships in recent months after referral partner Davis Polk & Wardwell launched an English law practice in the City.

The magic circle firm has openly said that the likes of Paul Weiss Rifkind Wharton & Garrison, Cravath Swaine & Moore and Wachtell Lipton Rosen & Katz are among those that will benefit from increased referral work in light of Davis Polk's move.