PwC launches legal arm in Japan, says China could be next
PwC has launched a legal services arm in Japan and could be eyeing China next as part of its plan to significantly boost its legal capability in Asia.
November 23, 2014 at 11:39 PM
3 minute read
PricewaterhouseCoopers (PwC) has launched a legal services arm in Japan and could be eyeing China next as part of a plan to significantly boost its legal capability in Asia.
The big four accounting firm began providing legal advice in Tokyo earlier this month, debuting with one partner offering local law advice and focusing on corporate and commercial work.
It follows PwC's launch in Singapore in July through a tie-up with two-partner local outfit, Camford Law.
Leon Flavell, global head of legal services, said the firm was hoping to service Japanese companies on outbound deals.
"Japan is a country where there is massive investment going abroad, so it is particularly important to have people on the ground there," he told Legal Week in an interview.
"It is an independent law firm and we've got one lawyer to start with. But we are looking to grow a bigger business in Japan over time."
Earlier this year PwC outlined plans to boost its Asian legal services revenue from $75m to between $150m and $200m, and to grow the number of lawyers from 250 to 500 in the region within five years.
In August it also hired ex-King & Wood Mallesons management duo Tony O'Malley and Tim Blue to spearhead the expansion.
Flavell said there were not yet any clear plans for how to roll out across Asia, but the firm recognised the region was critical to the PwC global network and to its clients.
He said the firm had managed to launch in Japan and Singapore more quickly than elsewhere, but this did not mean these were more important than other jurisdictions.
"I suspect China will be next given the sheer scale, the population and the number of cities," he added.
"It's going to be incredibly significant. The clients are in lots of places, so not just Shanghai, Beijing or Hong Kong. I would anticipate that we as a business would also be investing more widely, not just in one or two cities."
In Hong Kong the firm may also consider an ABS-style venture pending new regulations.
The city is currently eyeing its own 'Tesco law' operation, similar to that in the UK, which permits law firms to take external investment from, and be owned, by non-lawyers.
"If Hong Kong changes the regime then I would personally look at that," said Flavell. "But we would look at it on its own merit."
PwC provides legal services in 83 jurisdictions around the world and employs 2,500 lawyers globally.
Its decision to expand in Asia is in line with global plans to build out its legal offering in six core practice areas, namely corporate law, immigration, employment, mid-tier M&A, compliance, and banking and finance.
Flavell said Africa was also of interest to the firm, with client 'hubs' such as Nairobi in Kenya, Lagos in Nigeria, the Ivory Coast and South Africa as possibilities for further investment.
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