15/03/2026
The Uptick in Transatlantic Mergers
This week’s key terms/concepts:
• Transatlantic Practice: The commercial practices spanning the Atlantic Ocean, typically regarding the US and the UK but generally referring to North America and Europe.
• Mergers and Acquisitions (M&A): The process of companies combining, a merger, or one company purchasing another, an acquisition, to expand business operations.
Since Magic Circle firm Allen & Overy’s merger with Shearman & Sterling in 2024, there has been a stark increase in UK-headquartered law firms announcing mergers with US-headquartered firms. 2025 saw the completion of Herbert Smith Freehills’ merger with Kramer Levin, as well as back-to-back announcements of the intention to create Ashurst Perkins Coie, Winston Taylor and Hogan Lovells Cadwalader.
Why is this significant?
Firstly, firms will increase in scale. UK firms are looking to compete in the US, which is already a very saturated legal market. Instead of pursuing organic growth, like Freshfields has opted to do, merging allows for exposure to the US market. Ashurst, for example, which was in merger talks with Latham & Watkins in the early 2000s, will finally gain meaningful access to the US market. Similarly, Hogan Lovells (already a transatlantic product) merging with Cadwalader provides it with greater access to New York. With the arrival of the ‘Global Elite’ label threatening the prestige of the Magic and Silver Circles, firms understand that scale, especially in key hubs New York and London, is vital to be seen as top-of-the-market.
Secondly, firms will become more well-rounded, offering full-service solutions. For example, Cadwalader will provide Hogan Lovells with elite expertise in Banking, while Taylor Wessing’s IP and technology focus, combined with Winston & Strawn’s litigation and transactional expertise, provides clients with a ‘one-stop-shop’.
However, law firm mergers, especially transatlantic ones, risk affecting firm culture. For example, US firms in London provide on-the-job training whereas UK firms prioritise a structured programme. Culture not only affect juniors – partner exits are common post-merger due to a lack of cohesion and direction between seniors.
How could this impact the legal sector?
The increase in merger activity will cause law firms to become more distinct from each other. UK-US merged firms will be seen in a very different light to solely US or UK-headquartered firms, in terms of differing practice area specialisms or sector focuses. This may place more emphasis on boutique firms focusing on specific practices, as they will be seen as elite in their niche in comparison to merged firms doing a variety of work.
Lex Weekly 