Allen & Overy‘s Managing Partner, Gareth Price, has resigned from the global law firm ahead of its anticipated merger with Shearman & Sterling, as announced by A&O on Thursday. According to senior partner Wim Dejonghe, Price officially left the firm on July 10, citing “personal reasons” for his departure.
As the managing partner, Price was responsible for the day-to-day operations of the firm. Dejonghe, who previously held the position, will assume Price’s responsibilities temporarily. The timing of Price’s resignation aligns with the ongoing merger plans with Shearman, which Dejonghe confirmed are progressing well.
Originally scheduled for a June vote, the merger is now planned for October as the firms seek antitrust approval for the combination. Dejonghe and Shearman’s senior partner, Adam Hakki, are visiting various offices worldwide, conducting town hall meetings with partners to discuss the merger.
See also: London-based Allen & Overy and Shearman & Sterling Announce Merger Deal
A&O reported an increase in revenue for the 2022-23 financial year, reaching £2.1 billion ($2.5 billion). However, profits per equity partner dipped to £1.82 million ($2.2 million), down from £1.95 million ($2.66 million) in the previous year.
In May, the firm announced its agreement to merge with Shearman, a deal that necessitates approval from at least 75% of partners at both firms. Dejonghe acknowledged Price’s pivotal role in the negotiations with Shearman & Sterling, recognizing his contributions in setting the firms up for future success.
Having joined A&O as a trainee, Price had dedicated three decades to the firm. His departure comes before his term was due to end in 2024.
This recent development signifies a significant shift for Allen & Overy as it navigates through the merger process with Shearman & Sterling. The resignation of Managing Partner Gareth Price brings about a change in leadership, with Wim Dejonghe assuming his responsibilities temporarily. The merger vote, previously anticipated for June, is now scheduled for October, allowing more time for necessary approvals.
The revenue increase reported by A&O demonstrates the firm’s strong financial performance, even amid the challenges faced by the legal industry. While profits per equity partner experienced a slight decline, the firm remains optimistic about the future prospects resulting from the merger.
The ongoing visits to various offices by Dejonghe and Hakki reflect their commitment to engaging partners and addressing any concerns regarding the merger. These town hall meetings serve as platforms for open communication and ensure that all stakeholders are well-informed about the process and potential outcomes.
As Allen & Overy and Shearman & Sterling continue to work towards merging their operations, the legal industry awaits the final decision in October. The departure of Gareth Price, along with the diligent efforts of leadership and partners, sets the stage for a transformative future for both firms.
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