News

Email reveals decision on Allen & Overy and O’Melveny & Myers transatlantic mega-merger due in ‘coming weeks’

By on
20

US outfit suspends training contract applications

A decision on whether Allen & Overy (A&O) and US outfit O’Melveny & Myers will combine to create one of the world’s largest law firms is expected within the “coming weeks”, according to an email seen by Legal Cheek.

The update, sent to students by O’Melveny’s graduate recruitment team, reveals that a decision on whether or not to create a new transatlantic giant is “likely” to be reached in the “coming weeks”. In light of this, the email confirms that O’Melveny has temporarily suspended its current UK 2019 vacation scheme and 2021 training contract application processes.

O’Melveny declined to comment.

Rumours of a potential tie-up between the two giants have been swirling for almost a year now, with reports last summer claiming that O’Melveny’s top brass had jetted into London to meet senior lawyers at A&O. Fast forward several months and the firms are said to have met again, this time in a plush five-star hotel in Frankfurt

Responding to the rumours back in August, a spokesperson for A&O told Legal Cheek: “We have been clear that developing our presence in the U.S. is a priority for us and that we have spoken to a number of law firms there. However, we do not have any developments to announce and would reiterate that we won’t comment on any particular firm until the right time.”

A&O declined to comment on the email.

If given the go-ahead, the tie-up would create a new transatlantic giant boasting over 3,000 lawyers and combined revenues of £2bn ($2.8bn).

The 2019 Legal Cheek Firms Most List

20 Comments

Kronos

Pah. Soon Greenberg Glusker LLP will merge with the Chinese People’s Liberation Army and none shall stand in our way.

Anonymous

Watch – NQ salary will be phat. You heard it here first…

Anonymous

You mean flat ?

Anonymous

Phat.

Anonymous

Bollocks. A&O’s drones won’t be paid the same as O’Melveny’s London associates (the pay is pretty crap for a US shop btw). Most likely will result in some kind of two-tier compensation mechanism.

Anonymous

What’s OMM nq?

Anonymous

£95k, pretty shet for a us shop

Anonymous

wrong

Anonymous

I’d imagine two tier compensation system would upset a lot of A&O associates. But given how stingy A&O is, it is entirely possible.

citylawyer

10 years ago the MC firms were running around New York trying to merge with the US elite e.g. SullCrom/David Polk/Simpson/Debevoise (or even Latham or Kirkland) only to be roundly rebuffed. A decade later, there is now even less interest among the US elite to merge due to years of low growth and flat-lining profits among the MC firms. So it looks like A&O has had to substantially lower their US ambitions – O’Melveny is the “26th most prestigious” law firm in the US according to Vault. A&O may even have to sacrifice their name in order do so. It’s a little sad really.

Anonymous

Allen & O’Very

Anonymous

are the salaries for O’Melveny & Myers associates in London higher than Allen & Overy associates?

If so will this mean a pay cut for O’Melveny & Myers associates in London? since it is unlikely that Allen & Overy would want to raise all associate salaries in London to match O’Melveny & Myers.

Anonymous

O’Melveny pays around £95k NQ in London last time I checked, which isn’t all that much more than A&O. They might meet in the middle, on £85-90k or so. A&O slaves can only benefit from this tie-up

Anonymous

They can’t reduce the O’Melveny associates’ salaries and I Doubt they will up all the A&O salaries to match. so I imagine they’ll just run into the stupid situation where the associates are in two different pay brackets.

Anonymous

Yeh

Anonymous

wow legal cheek got a scoop

Anonymous

Not really -a student on Student Room posted at the beginning of the week that TC applications had been put on hold . Not a scoop, just stalking Student Room

Anonymous

People still use that site?

Anonymous

If they posted it here, the comment would be immediately deleted for spreading a rumour about a firm.

NOT FAIR

Not fair legal cheek.

I want to comment in the story ‘re the man who paid £57k to bump up his daughters exam score.

What gives legal cheek? Are we not allowed a view on this?

Join the conversation

Related Stories