UPDATE: Now O’Melveny says they aren’t merging. See update here.
Two firms that haven’t been shy about their interest in expansion are reportedly in “deep” discussions over a potential international merger. Magic Circle stalwart Allen & Overy and America’s O’Melveny & Myers are considering joining forces to create a new megafirm.
Christine Simmons and Rose Walker of the American Lawyer reported the nascent merger about an hour ago:
Ready for What’s Next: 5 Ways to Strengthen Economic Resilience
Get five practical tips to spot cash flow red flags early, speed up payments, track spending in real time, and build stronger client trust through clear, transparent billing—download the ebook.
Allen & Overy and O’Melveny & Myers are in deep discussions about a potential combination, according to two sources briefed on the matter.
If a merger deal is finalized between both firms, it would create a 3,000-lawyer business with roughly $2.8 billion in combined gross revenue. Details of the talks, to date, have been contained to only a small number of senior figures, although Allen & Overy partners were told in January that the Magic Circle firm was in talks with several U.S. firms about a potential combination.
Would this influx of Americans cure Allen & Overy’s atrocious gender pay disparity? I’m guessing no.
The tie-up would tread the well-worn path of previous cross-Atlantic deals like Clifford Chance’s takeover of Rogers & Wells, Norton Rose’s takeover of Fulbright & Jaworski and absorption of Chadborne, and Bryan Cave’s merger with Berwin Leighton Paisner. It appears that in the sport of Biglaw, everyone wants to play in both courts (see, that’s a double entendre!).
But every merger is special in its own way, so we’ll have to wait and see how this one plays out. Swiss Verein? Acquisition? True Merger? It’s all a mystery to us at this point.
How Filevine’s New DraftAI Cuts Out Hours Of Writing Work
Now it transforms your document creation with natural language prompts.
Stay tuned for more developments.
UPDATE: A firm spokesperson from O’Melveny reached out to tell us, “We have no plans to merge and never have.” So… that happened. More on that here.
Allen & Overy, O’Melveny Eye Potential Trans-Atlantic Union [American Lawyer]
Earlier: Another Biglaw Firm Reports Dismal Gender Pay Gap
Joe Patrice is an editor at Above the Law and co-host of Thinking Like A Lawyer. Feel free to email any tips, questions, or comments. Follow him on Twitter if you’re interested in law, politics, and a healthy dose of college sports news.