Simmons & Simmons is in merger talks with Watson Farley & Williams as the City firm makes a bold bid to forge a leading asset finance practice.The talks (first reported on www.legalweek.net, 5 March) come after initial discussions in December, with negotiations being led by Simmons managing partner David Dickinson and Watson Farley chairman Christopher Preston.
Watson Farley managing partner Michael Greville confirmed the two firms had been talking for “several months” after his firm decided to switch its attentions away from a US merger and focus instead on the domestic market.
He said: “We have been looking at opportunities to merge with a bigger firm; we brought UK firms back onto the agenda last summer.”
The merged firm would have more than 1,000 fee earners and combined revenues of over £200m.
The 53-partner Watson Farley last year posted global revenues of £49m, of which half comes from its London practice, with average partner profits of £323,000, compared with the £400,000 at Simmons.
The merged firm would create a leading finance firm combining Simmons’ capital markets practice with Watson Farley’s historic strength in asset finance, international tax and projects work.
However, Watson Farley’s respected Paris office, which has been negotiating a move to US firm Orrick Herrington & Sutcliffe, will not be part of any deal.
Orricks is close to signing a deal to take on the practice, which will see office head David Syed become head of Europe and take responsibility for building up Orricks’ London office. He and his partners have yet to resign.
On the international side, Simmons would gain Watson Farley’s offices in Piraeus, Singapore and Bangkok.
Watson Farley has been through a number of discussions with US firms, most notably Squire Sanders & Dempsey and Hunton & Williams, with which it almost completed a deal last year.