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A year of protracted negotiations between the Hong Kong operations of Richards Butler and US suitor Reed Smith have ended successfully, with the Hong Kong team agreeing to follow the rest of the firm and join Reed Smith's partnership, effective January 2008. The financially separate Hong Kong arm, with 13 equity partners, had been previously left out of a vote for a global merger between the two firms in mid-June 2006 that resulted in the rest of Richards Butler integrating with Reed Smith. The Hong Kong partnership was eventually won over by the opportunities the global platform could bring, as well as the reported success of the integration by the rest of the firms' operations. Gregory Jordan is to remain firm-wide managing partner, with Hong Kong partners Graham Winter and Will Barber to join Reed Smith's firm-wide executive committee. The merger gives Reed Smith, one of the world's 15 largest law firms, a ready-made presence in Asia through 25-year Hong Kong stalwart Richards Butler, itself one of Hong Kong's top five. The combined firm will have 110 lawyers in Hong Kong and Beijing. Reed Smith has already flagged its intention to seek a licence to practise in Shanghai as soon as the merger with Hong Kong is complete. Hong Kong partner Chris Howse said Richards Butler gives Reed Smith a unique platform to launch in Asia. "At the same time, our Hong Kong corporate clients and our Chinese clients who are making investments outside Asia will benefit from the international platform and capabilities that Reed Smith can bring to us," Howse said. The merger will see the completion of a rapid Reed Smith expansion program over the past 12 months, with three significant mergers having added 500 lawyers worldwide. After the imminent combination with Richards Butler Hong Kong's, Reed Smith will have more than 1,500 lawyers worldwide and revenue in excess of US$1bn. |
