London-based law firm Allen & Overy and New York's Shearman & Sterling have announced plans to merge to create one of the world's largest legal practices. If partners at both firms approved the deal, it would result in a combined global revenue of approximately $3.4 billion.
This potential merger is expected to be one of the largest in recent years and would establish a firm with approximately 3,900 lawyers across 49 offices worldwide. The merged entity, to be called A&O Shearman, will be unique in its ability to offer U.S. law, English law, and local law capabilities equally, according to a joint statement by the two firms.
This announcement follows Shearman & Sterling's recent decision to discontinue talks regarding a potential tie-up with transatlantic firm Hogan Lovells. Furthermore, Shearman & Sterling has undergone attorney and business professional layoffs in the United States and has experienced partner-level departures across various locations recently.
In terms of financials, Allen & Overy reported global revenues of $2.65 billion in 2021/22, making it significantly larger than Shearman & Sterling, which generated approximately $1 billion, as reported by The American Lawyer.
Upon completion, the proposed merger would establish the third-largest integrated law firm globally based on gross revenue, with a $1 billion practice in the United States. No specific timeline for the partner vote on the deal has been provided in the firms' joint statement.
Wim Dejonghe, the senior partner at Allen & Overy, expressed that the merger would enhance their ability to serve clients in the U.S. market, which has long been a strategic priority. Adam Hakki, the senior partner at Shearman & Sterling, emphasized that joining forces with Allen & Overy would significantly accelerate their ability to meet clients' needs in an increasingly complex environment.
