Allen & Overy and Shearman & Sterling Merges into ‘Allen Overy Shearman Sterling’

Allen & Overy and Shearman & Sterling Merges into ‘Allen Overy Shearman Sterling’

The International law firms Allen & Overy (A&O) and Shearman & Sterling have announced a merger to create a unique global law firm named Allen Overy Shearman Sterling (A&O Shearman for short).

It is expected that after the merger, A&O Shearman will have revenue of around $3.4 billion and house 3,900 lawyers across 49 offices. The merger deal is expected to be put to partners at both firms before the summer with completion in six to 12 months.

As per the press release, the proposed deal by the two firms pitched A&O Shearman shall be known as ‘integrated global elite firm,’ and the only such firm with ‘US law, English law, and local law capabilities in equal measure.’

The combined firm would have 210 partners and $1 billion in US revenue, leaving A&O’s three UK rivals, Clifford Chance, Freshfields Bruckhaus Deringer and Linklates, trailing in its wake in terms of the size of their respective US arms.

Senior Partner at Allen & Overy Wim Dejonghe said:

“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. We have listened to our clients and their requests for the highest quality advice to help navigate the demands they face, and to do so in an integrated and globally consistent way. We, A&O Shearman, will do this by accelerating our ability to bring the best of both firms, regardless of geography.

Shearman & Sterling is an incredible group of legal minds; a firm built on integrity and excellence, founded like us in a premier global financial capital and with an extraordinary group of longstanding clients. What excites me about this merger is the complementary cultures of our two firms. We have striking similarities across the board, and I believe we are going to be wonderful partners to one another on this journey.”

Adam Hakki, who took over as Shearman & Sterling Senior Partner shortly after the talks with Hogan Lovells ended, commented:

“Client need for global elite firms has never been greater. They are calling for integrated global legal solutions and advice: merging with Allen & Overy will dramatically accelerate our ability to meet their needs in an increasingly complex environment. Allen & Overy is an outstanding firm whose work we have long admired and thought of as a kindred spirit. We have both always placed great emphasis on attracting and retaining top talent, were early to globalize, and are relentlessly focused on quality, excellence, and collaboration.

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.”

A vote by the Partners of each of the respective businesses is one of the standard closing requirements for the proposed merger.