Spanish independent Cuatrecasas is set to vote on joining the Herbert Smith, Gleiss Lutz and Stibbe alliance after holding recent discussions with the firms.
The Iberian giant, one of Europe¹s top remaining independents, is scheduled to discuss joining the international alliance in its partnership meeting in early March and will vote on the move in its following meeting at the end of the year. The vote will require a two-thirds majority to win approval.
It is understood Cuatrecasas discussed the issue with the alliance members in December but that there are a number of stumbling blocks that would need to be addressed, including branding and Cuatrecasas¹s referral relationship with Stibbe¹s Benelux rival, Loyens & Loeff.
Herbert Smith has denied any formal approach has been made but conceded it has held talks with the Spanish firm about adding it to the alliance. In September last year, Herbert Smith launched a review of its international capability and, with its deal markets taking off, Spain is fast becoming a vital part of the Continental jigsaw for international firms.
One partner at an alliance firm told Legal Week: ³There has been no formal offer made to Cuatrecasas but we have discussed the possibility of them joining the alliance. It would be a long-term plan and there would be many issues to sort out but we have done a lot of work together and like the firm a lot.² If a deal is agreed, Cuatrecasas¹s Portuguese arm, Goncalves Pereira Castelo Branco, would also become an alliance member.
Cuatrecasas already has an informal referral relationship with the allied trio that was further strengthened after the Spanish firm announced in December that it would be seconding a lawyer to Herbert Smith¹s Shanghai arm.
The talks come as a growing number of international firms move to secure a foothold in the active Iberian legal market, including US giant Latham & Watkins, which launched late last year.
In recent years deals including Spanish utilities group Iberdrola¹s £11.6bn offer for Scottish Power, Telefonica¹s £17.7bn takeover of UK rival O2 and Ferrovial¹s £10.3bn takeover of UK airports operator BAA have generated global interest from foreign advisers.
Additional reporting by James Illman.