Magic Circle's Allen & Overy and Shearman & Sterling are joining together, subject to partner approval

 

Magic Circle's Allen & Overy and Shearman & Sterling are joining together, subject to partner approval, to form one of the biggest law firms in the world, with almost 4,000 solicitors spread across 49 offices.  The merger of two significant legal industry rivals is the first in more than 20 years, and the new business will concentrate on private equity, life sciences, and energy transition. With over $1B in revenue in the U.S., 30% from the U.K., and 40% from the rest of the world, the merger will give both companies enormous size in London and New York. New York-based Shearman has been attempting to expand and improve profitability, while London-based Allen & Overy has been trying to break into the lucrative U.S. market. Due to a decline in demand and a need for economies of scale, Shearman had been restructuring and making cuts. After the partners' approval, the merger is anticipated to close between six to 12 months, and neither company expects any significant difficulties in aligning pay structures.