That’s what Mallesons partners are saying about their new to be? partners in non crime ,, PRC based King & Wood.
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The UK’s Legal Week magazine report that?? Mallesons Stephen Jaques is pushing forward with plans for a tie-up with top Chinese law firm King & Wood in what could mark a highly significant union in the Asia-Pacific market.
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Here’s the report in full
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The top-tier Australian firm’s partners were given the chance to air their views about the potential union at a meeting in Sydney last month, with discussions between the two firms now set to progress after partners offered broad support for a tie-up.
Partner feedback on a potential deal is now set to be presented to Mallesons’ management at the end of November.
The talks, which first emerged in July, could see the firms enter into a combination via a Swiss verein structure, allowing them to maintain separate finances while centralising some functions and operating under one name.
Due to Chinese regulatory constraints, Mallesons and King & Wood would not be able to enter into a full merger; however, if a tie-up was to go ahead, an alternative arrangement could see the firms separately merge their Australia, Hong Kong and China operations.
One Mallesons partner said: “We are still talking and it has progressed and is progressing. The idea is that we will eventually merge to the extent that we can, but that would be in a few years.”
Profits per equity partner (PEP) at Mallesons are understood to be higher than that of King & Wood, one issue which could prove a potential stumbling block. In 2009-10 Mallesons’ average PEP stood at A$1.2m (?750,000), while according to The Australian Financial Review, the firm’s best-paid partners received as much as A$1.9m (?1.2m) for 2010-11.
Mallesons currently has around 1,000 legal staff working across nine offices, including four outside Australia in Hong Kong, Shanghai, Beijing and London. King & Wood, which has an existing strategic alliance with Australia’s Gilbert + Tobin, has around 950 legal staff based in 13 offices in China, New York, Tokyo and Palo Alto.
The developments come after Ashurst and Australia’s Blake Dawson last week (26 September) finalised the terms of their tie-up.
The deal will see the two firms combine their businesses in Asia from March 2012, with the 190-partner Blakes rebranding entirely under the Ashurst name both in Asia and Australia from the same point.
The full merger, which will need to go to a further vote by both partnerships in early 2014, is subject to Blakes bringing its finances in line with Ashurst.
