International interest in UK mergers grows as City retains pulling power
The number of international law firms in London open to a UK merger has almost doubled over the past year, according to new research which highlights the sustained attraction of English law for firms with global ambitions. Legal Week's annual survey of international law firms in London has seen the number of firms that would consider a UK merger rise from seven to 13, of which three – K&L Gates, Bryan Cave and Wilmer Cutler Pickering Hale and Dorr – said they would 'definitely' consider the option.
June 07, 2012 at 07:03 PM
4 minute read
The number of international law firms in London open to a UK merger has almost doubled over the past year, according to new research which highlights the sustained attraction of English law for firms with global ambitions.
Legal Week's annual survey of international law firms in London has seen the number of firms that would consider a UK merger rise from seven to 13, of which three – K&L Gates, Bryan Cave and Wilmer Cutler Pickering Hale and Dorr – said they would 'definitely' consider the option.
In addition, firms that would 'possibly' consider a UK merger include Reed Smith, Salans, White & Case, Morrison & Foerster, Pillsbury Winthrop Shaw Pittman, Winston & Strawn, Edwards Wildman Palmer, Duane Morris, Faegre Baker Daniels and Fasken Martineau.
WilmerHale, for example, which has had a London presence since 1972, is keen to merge with a UK firm in a bid to grow its corporate and M&A capabilities in Europe, to complement its established practices in arbitration and dispute resolution.
Of a total of 63 respondents to the survey, only 25 said that they would not consider a UK tie-up.
Fasken London managing partner Gary Howes said: "Some mergers look like firms huddling together for warmth rather than striking out boldly on a well-thought out strategy. Fasken reflects the Canadian marketplace – very strong in mining resources and energy, as well as banking and financial institutions. We continue to build on our strengths, and that may take us places which are relevant to those practices."
The research also reveals that international firms are continuing to grow their London partner count, as well as their firmwide numbers of UK-qualified partners, with a 7% rise in both metrics.
Of those surveyed, US firm White & Case added the largest number of UK partners during the past financial year, with London partner count growing by 10 and total UK-qualified partner count rising by 14.
London office head Oliver Brettle commented: "The importance of English law in cross-border transactions as well as disputes continues to grow. To service this work you need English law-qualified lawyers. London also continues to be an important hub for financial services, while the UK remains one of the world's largest economies, meaning that to be a credible global law firm you need to have a substantial presence in London. At White & Case we have this and we view it as a continuing source of strength for the whole firm."
In terms of UK lawyer count, Dechert was the most expansive firm, adding 33 lawyers to its UK headcount alongside a number of eye-catching partner hires, followed by Kirkland & Ellis at 28 and Latham & Watkins with 25.
The importance of a London presence has also been underscored by a number of new market entrants, including US firms Vedder Price and Locke Lord – which launched a London office through a seven-partner hire from Salans – while Wall Street leader Davis Polk & Wardwell launched an English law practice in the City this January with the hire of Freshfields Bruckhaus Deringer corporate veteran Simon Witty.
Locke Lord global executive committee member Stephen Finch said: "English law remains important in international cross-border commercial transactions.The certainty and integrity of English law combined with its flexibility to deliver enforceable security are key drivers. Additionally, the market recognises the sophistication and quality of English lawyers."
See next week's issue for the full report on the international law firms in London survey.
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