Allen & Overy and Shearman & Sterling are planning to merge to create one of the world’s largest legal firms with $3.4 billion in revenue.
(Bloomberg) — Allen & Overy and Shearman & Sterling are planning to merge to create one of the world’s largest legal firms with $3.4 billion in revenue.
The newly created entity will be named Allen Overy Shearman Sterling, or A&O Shearman, the companies said in a release Sunday. The firm will have almost 4,000 lawyers across 49 offices and 29 countries and offer US law, English law and local law capabilities, according to the release.
The announcement comes after Shearman recently abandoned a merger with Hogan Lovells, prompting many of its senior partners to leave. A&O, which has been seeking to expand in the US like other so-called Magic Circle firms, attempted to merge with Californian law firm O’Melveny & Myers in 2019, but that deal didn’t work out.
“Client need for global elite firms has never been greater,” Adam Hakki, senior partner at Shearman, said in the release. “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.”
The proposed merger is subject to a vote of the partners of the firms.
Lazard is serving as financial adviser to Allen & Overy, while Simpson Thacher & Bartlett LLP is its legal counsel. Davis Polk & Wardwell is serving as legal counsel to Shearman & Sterling.
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