After two quiet years, the market for international commercial law firms could see significant movement in the coming weeks.

According to the trade press, the two major law firms Shearman & Sterling and Hogan Lovells are in exploratory talks about a possible merger.

At the beginning of December there was said to have been a meeting of senior Shearman partners in London about a transformation of the US law firm.

This was reported by The Lawyer a few days ago.

Marcus Young

Editor in Business.

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If the merger comes about, it will create a global law firm with 3,450 lawyers who, with 3.6 billion dollars, would move up to the top of the top-selling commercial law firms.

However, the top of the market would remain reserved for the US law firms Kirkland & Ellis and Latham & Watkins.

Both Hogan Lovells and Shearman have expressed reservations, but have not denied the talks.

"As a leading global law firm, we regularly review our global strategy and the opportunities that may be available to us, and this includes discussions with various law firms in the market," said Hogan Lovells.

Shearman said it is continually reviewing opportunities for growth: "This includes both internal and external opportunities that will benefit our business and our customers."

Hogan Lovells, which was formed in 2010 through the transatlantic merger of the British law firm Lovells and the US law firm Hogan & Hartson, can enter into discussions as a larger partner with a broad international network.

It has 47 locations worldwide, 17 of which are in Europe.

In Germany, Hogan Lovells has offices in Munich, Frankfurt, Düsseldorf and Hamburg.

With 22 offices, Shearman is much smaller.

A decade ago, the Wall Street law firm reduced its presence in Europe, closing offices in Düsseldorf and Munich.

Since 2021, Shearman has been building an office on the Isar again next to Frankfurt.

New York is a highly competitive market

However, Germany is only likely to play a subordinate role in the strategic considerations of a merger.

Through Shearman, Hogan Lovells, whose practices have traditionally been very strong in Washington, could gain highly competitive access to lucrative corporate and capital markets mandates in New York.

For the Shearman partners, the competitor's broad range of expertise and its numerous industrial customers are likely to be decisive in a vote.