Two leading law firms, Allen & Overy and Shearman & Sterling, have recently announced their plans to merge, creating a new global legal powerhouse named A&O Shearman.
The merger is expected to create a formidable legal institution with 4,000 lawyers, 800 partners, and 49 offices worldwide. With a combined revenue of $3.4 billion, A&O Shearman will become the third-largest integrated law firm by gross revenue. Notably, the merger will generate $1 billion in revenue, further solidifying the combined firm’s presence in the American market with 210 partners and 720 lawyers.
With a combined experience of 250 years, one of the key differentiators of the combined firm will be its unique offering of U.S. Law, English Law, and Local Law capabilities in equal measure. The benefits of the merger are substantial for both firms. For Allen & Overy, the merger will result in the creation of a $1 billion U.S. business, with increased board-level recognition and expanded access to a U.S. corporate client base through the well-established Shearman & Sterling brand. On the other hand, Shearman & Sterling will gain access to an expanded “rest of the world” offering and benefit from the combined firm’s capabilities in various emerging areas, such as Energy, Technology, and Private Equity.
The merger holds significant implications for clients as well. A&O Shearman aims to transform its ability to offer a truly integrated global service, responding to the demands of clients facing complex regulatory, technological, and geopolitical challenges. With a commitment to providing the highest quality advice, both firms will continue their focus on client satisfaction during the merger process.
Addressing potential conflicts, the firms have undertaken a preliminary assessment and will continue to manage and resolve any issues that may arise as the merger progresses. They do not anticipate a significant number of conflicts, and specific clients will be alerted directly if necessary. As the integration progresses, clients will be informed of any changes and provided with full details.
Wim Dejonghe, Senior Partner at Allen & Overy, expressed his excitement about the merger, highlighting the combined firm’s ability to provide high-quality, integrated legal services globally.
“This combination of two great firms is such an exciting step for us. Both firms have a history of excellence, and together we think A&O Shearman will be a firm unlike any other in the world”.
Adam Hakki, Senior Partner at Shearman & Sterling, emphasised the increasing need for global elite firms and their commitment to meeting clients’ demands through this transformative merger.
“This is truly a game-changing moment for both firms that will create an unparalleled offering for our clients. It is also a fantastic opportunity for our people to be part of a transformative transaction and an institution of such significance, and we look forward to recruiting even more stellar talent in the coming years.”
The news of the merger with Allen & Overy comes shortly after Shearman & Sterling ended merger talks with Hogan Lovells earlier this year.