Dentons China merger reaction: deal meets mixed response from partners
World's largest law firm receives mixed reaction from partners as Dentons prepares to merge with 4,000 lawyer China giant
January 22, 2015 at 12:43 PM
3 minute read
Dentons' merger with Chinese legal giant Dacheng has received a mixed reaction from the UK legal market, with some predicting it will lead to a spate of copycat tie-ups while others have doubts about the likely success of the union.
The deal, which has yet to receive regulatory approval in China, will create the largest law firm in the world with around 6,500 lawyers, of which around 4,000 will come from the Chinese firm.
It will be known as Dacheng inside China and Dentons outside, but with the Chinese symbols for Dacheng at the start of the logo.
The union marks the first deal of this scale between a Chinese and US firm and comes less than 18 months after the merger between China's King & Wood Mallesons and legacy UK firm SJ Berwin went live.
Mark Rigotti, co-chief executive of Herbert Smith Freehills, said it was a "brave" move for both firms.
He said: "They have obviously got a strategy around scale and reach and they are pursuing it. I think it is interesting that in a firm that big there must be a significant number of the partnership that focus on domestic work where the international dimension will not be relevant. The main question is how do you bring everyone into the global vision?"
Other partners at UK firms have raised similar questions about the scale of the Chinese firm.
The head of one top 10 UK firm said: "I have not got a clue why they have done this. Why have that many lawyers in China? I am a bit surprised. I can't see the point and this firm would not have been on my radar."
A partner at a different Chinese firm said the merger was a "step up" for Dacheng. He said: "This is positive for Dacheng – it [gives is] an additional amount of cache in the market."
Another asked:"Where are the synergies? Dacheng is not very centralised – I don't understand how they can work together."
In contrast, Alan Hodgart, founder of legal consultants Hodgart Associates, said: "It suits Dentons because they get to tell everyone they have a full scale Chinese firm unlike most of its competitors and Dacheng gets to say it has got into the international arena unlike most of their competitors."
Tony Williams, principal of Jomati Consultants, said the merger "made sense". He added: "It's a very big transaction but I wouldn't be surprised to see more in a few years. The key thing for firms with a strong Chinese capability of this sort is to persuade the Chinese clients they are the go-to firm for foreign investment. It is too early to see if Chinese clients would rather go through a Chinese firm first or would rather go direct to other international firms that they know."
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllSingapore Litigators Shift Competitive Landscape as Another Senior Duo Sets Up Own Shop
Will a Market Dominated by Small- to Mid-Cap Deals Give Rise to This Dark Horse US Firm in China?
Big Law Sidelined as Asian IPOs in New York Dominated by Small Cap Listings
Long Hours, Lack Of Boundaries: Associates In India Are Leaving Their Firms
Trending Stories
- 1No Two Wildfires Alike: Lawyers Take Different Legal Strategies in California
- 2Poop-Themed Dog Toy OK as Parody, but Still Tarnished Jack Daniel’s Brand, Court Says
- 3Meet the New President of NY's Association of Trial Court Jurists
- 4Lawyers' Phones Are Ringing: What Should Employers Do If ICE Raids Their Business?
- 5Freshfields Hires Ex-SEC Corporate Finance Director in Silicon Valley
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250