Linklaters and Allens Arthur Robinson form Alliance in Australia

Linklaters and Australia’s Allens Arthur Robinson have signed on to form an alliance, operating with separate profit pools. Partners voted on Friday April 20, confirming the deal, and it will take effect on May 1. With the alliance the firms will team up on joint client pitches, share resources and will work together in recruitment and training of new employees. The alliance also permits the two firms to work jointly in Asia’s markets of energy, resources and infrastructure. The two firm also created a second joint venture, this on in Indonesia, that builds on the existing venture Allen already has with Widyawan & Partners . This second venture will encompass energy, resources, infrastructure, banking, capital markets and mergers and acquisitions. In Indonesia, the profit pool will be shared.

Both law firms have said that there is no intention to merge right now but there is the option to enter new jurisdictions in Asia together should they see fit. There are 600 lawyers at Allens Arthur Robinson working in 14 offices across Australia and Asia right now. There are offices located in Indonesia, China, Thailand, Vietnam and Singapore. At Linklaters there are 300 lawyers working at offices in Shanghai, Tokyo, Beijing, Hong Kong, Singapore and Bangkok.

There are some locations where the firms both have offices and because of this, some of the lawyers from Allen will work in the Linklaters offices. The law firm of Allens Arthur Robinson will be rebranded as Allens while suing Linklaters’ brand imagery.

Simon Davies, the managing partner for Linklaters, said the following:

“This deal has been in planning for a year and we have been talking about how to approach certain markets in Asia, namely Indonesia and energy, resources and infrastructure. Allens is the best firm in Australia and a combination with Linklaters – which we argue is the best firm outside of Australia – will give both firms a compelling proposition. This is about collaborating to provide a seamless service to clients.”

Allens reported revenues of $459.5 million in 2010 with profit per equity partner of $1.1 million. The deal with Linklaters is the latest in a long line of firms exploring the Australian markets recently. In 2011, King & Wood from China agreed to merge with Mallesons Stephens Jacques while Ashurst merged with Blake Dawson on March 1. Clifford Chance , Allen & Overy, Norton Rose and DLA Piper have also moved into the Australian legal market since 2010. More law firms are working on entering the Australian legal market within the next couple of months as well.