Shearman & Sterling finally found where to merge (in Allen & Overy)
Judging by last year’s news, the US Shearmans (approximately 850 rowers) have long been looking for someone to merge into. It was first rumored in December 2022 that they would merge with Hogan Lovells. Both firms desperately denied the rumors.
Later on, they did confirm that they were negotiating. And after, it became clear that something was wrong with Shearman because in April, the entire Munich office, including the office itself, was transferred to competitors — Morgan, Lewis & Bockius. The news comes on the heels of a Bloomberg report that the Shearman’s turnover in 2022 is down 10% from last year (they earned roughly $1 billion in 2022).
Well, the other day, there was news about the merging with the English Allen & Overy. 3,900 lawyers will row for the combined firm, that is, they will enter the top 5 law firms in the world in terms of the number of lawyers.
There are 10,000 people in the Dentons supermarket chain. In second place is Baker McKenzie (4,795), followed by DLA Piper (4,028), combined Allen & Overy, and Norton Rose Fulbright (3,084) followed them. The numbers are hardly super accurate because they are as of 2022.
If you add up the turnover of both firms, it will be approximately $3.4 billion, which can also theoretically ensure Allen & Overy a place in the top 5 in the world after Kirkland ($6B), Latham & Watkins ($5B), DLA Piper ($3.4B).
For the press, the partners, as it usually happens, did not say anything except for some meaningless platitudes:
“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,” Wim Dejonghe, Allen & Overy’s senior partner, said in a statement. “We, A&O Shearman, will do this by accelerating our ability to bring the best of both firms, regardless of geography.”
For Allen & Overy, this is a strategic merging because they have been looking for a way to enter the US market for a long time. But for Shearman & Sterling, this is rather the result of a crisis within the company and, therefore, a forced step. Well, let’s see how the firms will get along because not every corporate culture will be able to swallow 700 lawyers, even more — in another jurisdiction.
✍️ Dima Gadomsky
