Global legal practice is on the point of going the same way as accounting - with a small number of dominant players. By Christopher Stoakes
This summer UK law firm Clifford Chance announced that it was merging with US firm Rogers & Wells and German firm Pünder, Volhard, Weber & Axster to create the first global law firm providing capital-markets expertise. This has major implications for competitors and for the sorts of client such a firm will attract - banks, investment institutions and multinational companies. The rationale is simple. New York and English law are virtually fungible when it comes to capital markets transactions. A New York law capability is crucial for any issue distributed in the US requiring an opinion letter confirming compliance with SEC strictures. Clifford Chance realized this in the early 1990s and was in the vanguard of UK law firms to recruit New York lawyers. However, as more law firms detected the need, demand outstripped supply. So such firms as Clifford Chance were taking too long to build a US capability with the requisite depth. A merger was the logical option.