Legal Business

NRF’s New York merger – the trade-offs of federalism

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Comment Norton Rose Fulbright

Barely into 2017 and it has already been an eventful year for verein-based law firms, with King & Wood Mallesons meeting a painful end in Europe while, in happy contrast, Norton Rose Fulbright (NRF) has just secured its second substantive US merger in the shape of Chadbourne & Parke.

The deal hands NRF 300 lawyers and a major upgrade to its Manhattan practice, which it certainly wanted and needed. Given the federal structure of NRF, the deal is primarily a merger within its US business, marrying the legacy Fulbright & Jaworski to a firm with complementary strengths across energy, projects and finance, nicely combining Fulbright’s Texas heartlands with Chadbourne’s New York base.

Legal Business

Texan draw: Baker Botts latest to make major play with nine partner NRF hire

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Strategic recruitment Baker BottsNorton Rose Fulbright

In yet another significant Texan transfer, Baker Botts has expanded its Houston offering bringing in a nine partner team from Norton Rose Fulbright (NRF).

The move comes as NRF announced earlier today (21 February) it had agreed to merge with 400-lawyer Chadbourne & Parke. The merger will see Chadbourne’s $250m practice bolted on to NRF’s US arm under the verein structure, giving the combined firm a potential global turnover of around $2bn. Houston is the home of NRF’s 2013 merger partner Fulbright & Jaworski.

Among those joining Baker Botts is NRF’s former head of US M&A and securities practice David Peterman, the former head of its Houston corporate and M&A practice Efren Acosta and the former head of NRF’s US tax practice Robert Phillpott. Corporate partners Edward Rhyne, Natasha Khan and Dan Tristan, global projects partners Ned Crady and Daniel Mark and tax partner Ron Scharnberg also join the firm.

Baker Botts managing partner Andrew Baker said: ‘These new additions dramatically enhance our strength in the areas of private equity, mergers and acquisitions, tax, finance and projects in the upstream, midstream and downstream energy markets.’

Gibson, Dunn & Crutcher, Winston & Strawn and Dorsey & Whitney all announced new offices in Texas earlier this month. Gibson Dunn confirmed it had opened a new Houston office with eight partners, while Winston & Strawn has taken on 23 new partners from eight different firms and has launched an office in Dallas. NRF head of US business law Tom Hughes was among the team that made the move. Dorsey also opened an office in Dallas with five partners from Schiff Hardin bringing its office count to 14 offices.

madeleine.farman@legalease.co.uk

Legal Business

East side story: NRF adds Manhattan capability with projects-driven Chadbourne tie-up

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Legal mergers Chadbourne & ParkeNorton Rose Fulbright

In its second major US merger in four years, Norton Rose Fulbright (NRF) has secured strength for its New York practice through a deal with 400-lawyer Chadbourne & Parke.

The merger will see Chadbourne’s $250m practice bolted on to NRF’s US arm under the verein structure, giving the combined firm a potential global turnover of around $2bn.

NRF global chief executive Peter Martyr said: ‘Chadbourne has a proud history, and is known for its world class practices in energy, infrastructure, banking and finance. Joining forces with our new colleagues, we can offer our clients significant new capabilities in New York and Washington, DC.’

The deal will give NRF additional new offices in Mexico City, São Paulo and Istanbul. The combination creates a firm with 1,000 lawyers in the US and 300 lawyers in New York alone. NRF said the deal would give the firm 4,000 lawyers in 58 offices.

Chadbourne managing partner Andrew Giaccia said: ‘Our firms share a strategic vision and client focus, and we have highly complementary practice and industry strengths. Following the combination, our global offerings will be virtually unrivalled in many areas, from energy and infrastructure to finance, bankruptcy and restructuring, litigation and regulatory work.’

The deal results in the disappearance of the Chadbourne name as the projects, energy and insurance firm merges, with the bulk of the firm joining the NRF’s US arm and a handful of partners joining in the City.

NRF partners told Legal Business London partners only voted on lateral hires into the European business, with the main deal thrashed out by the US partnerships. Voting in London took place from Friday 3 February with one partner suggesting the hires were passed by the following Monday.

The deal adds significant strength in New York, a major target of NRF’s management since its tie up with Texan firm Fulbright & Jaworski in 2013, which was strong in disputes and energy but underweight in the New York market. Chadbourne also provides a trophy project finance practice.

In London the firm gains five partners who join NRF’s European LLP under Chadbourne managing partner Adrian Mecz, as well as several international partners from Moscow, Johannesburg and Sao Paulo.

The deal comes less than six months after NRF merged with 90-lawyer Canadian firm Bull, Housser & Tupper, its third Canadian merger.

matthew.field@legalease.co.uk

Read more in: ‘On the bus – Inside the Norton Rose Fulbright masterplan’

Legal Business

Legacy Norton Rose partnership given limited voting rights on Chadbourne merger

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Legal mergers Chadbourne & ParkeNorton Rose Fulbright

Partners at legacy Norton Rose‘s European business will get a limited vote on the firm’s next potential US merger with New York firm Chadbourne & Parke, Legal Business understands.

Instead of being able to vote on the union with Chadbourne, Norton Rose Fulbright (NRF) European partners, which vote early next week, will only be able to decide on whether partners from Chadbourne’s European offices join the firm.

Under verein structure of NRF, which treats the different member firms as separate businesses for legal purposes, the deal will only see partners under the US arm of the firm voting on a union with Chadbourne.

Despite the size of the merger, which would see NRF combine with Chadbourne’s $250m global business, the deal is being worked out in the US with limited input from senior partners in the European arm of the firm. Chadbourne has around 300 lawyers in the US, while NRF has close to 700.

Last year’s deal which saw NRF’s Canadian arm merge with Vancouver firm Bull, Housser & Tupper was also not subject to a firmwide vote. Two senior partners at legacy Norton Rose told Legal Business the European firm was not expected to vote on the merger. A spokesperson for the firm refused to comment on the voting process.

Last week, NRF’s European arm reported a turnover boost of nearly 11% – up to £434m for 2015/16 from £319m the previous year. The global firm saw turnover slip around 3% in dollar terms for 2015 to $1.7bn.

A statement from NRF global managing partner Peter Martyr (pictured) and US managing partner Daryl Lansdale said: ‘We believe that the combination would provide an even stronger global platform for our clients, who would also benefit from our compatibility in both practice and industry focus. We will make no further comment on this matter until discussions with our partnership have concluded.’

A spokesperson from Chadbourne confirmed the talks: ‘A prospective union with Norton Rose Fulbright has the potential to enhance our capabilities and add tremendous value for the clients of both firms, but there are still a number of considerations left in this process, and it is premature to discuss these in any detail. We hope to have something to report on this soon.’

matthew.field@legalease.co.uk

Read more in: ‘On the bus – Inside the Norton Rose Fulbright masterplan’

 

Legal Business

Norton Rose Fulbright eyes greater US depth through late-stage merger talks with Chadbourne

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US Norton Rose Fulbright

In what would be its second North American merger in two years, Norton Rose Fulbright (NRF) is understood to be close to sealing a deal with $250m New York firm Chadbourne & Parke.

The deal would add to NRF’s $1.7bn top line and take the firm up to almost $2bn in total revenue worldwide.

The firm only recently sealed a merger with Canadian firm Bull, Housser & Tupper late last year, expanding its North American presence into Vancouver. NRF operates as a verein structure with business in Europe, Canada, South Africa, Australia and the US.

The merger comes four years after NRF first entered the US with its combination with Texas practice Fulbright & Jaworski. A tie-up with a struggling Chadbourne would make sense strategically in the US, giving NRF greater strength on the east coast of the US with the added attraction of its trophy project finance practice, which would complement NRF’s wider focus on energy and infrastructure.

Chadbourne is centred in New York, with a presence in Washington DC, Los Angeles, Mexico City, Sao Paulo, Moscow, Istanbul, Dubai and Johannesburg. It has a small insurance-focused offering in London.

Chadbourne has been on the merger hunt before, entering into talks with Pillsbury Winthrop Shaw Pittman in 2015, before talks ultimately fell through later that year.

NRF has also sought expansion in Asia recently, entering into discussions with Henry Davis York in Australia and opening an office in Papau New Guinea, while European expansion has seen a new office in Monaco.

However, the firm has failed to capitalise on its 2013 transatlantic tie-up with Fulbright, with global turnover at the firm struggling. Revenues fell around 3% in 2015.

NRF was unavailable for comment. Chadbourne & Parke refused to comment.

matthew.field@legalease.co.uk

For more on Norton Rose Fulbright, read ‘On the bus – Inside the Norton Rose Fulbright masterplan’

Legal Business

‘Feel good factor’: Norton Rose and Stephenson Harwood advise on £350m Civitas IPO

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Corporate Norton Rose FulbrightStephenson Harwood
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After a slow spell for the initial public offering (IPO) market, Norton Rose Fulbright and Stephenson Harwood have picked up mandates on Civitas Social Housing’s float on the London Stock Exchange (LSE).

The listing raised £350m last Friday (18 November), above initial estimates of around £250m when the deal was first announced at the start of November.

Norton Rose advised Civitas on the float which was the first social housing focused real estate investment fund to list on the LSE. The firm’s team was led by corporate partner Michael Newell with a tax team led by partner Angela Savin.

Stephenson Harwood acted for Cenkos Securities, the sole sponsor and financial adviser on the float. Stephenson Harwood investments partner Alex Haynes told Legal Business: ‘This social housing play is the first of its kind. People were excited about it coming to market and the deal had a feel good factor to it in freeing up capital for further social housing development.’

Norton Rose partner Newell added: ‘There is a significant social housing shortage in the UK which requires innovative solutions. Civitas will have the opportunity to assist housing associations and local authorities to free up the capital required to expand their development programmes.’

The second half of 2016 has seen a relative pick-up in IPO work after in a slow year. In London a number of headline IPOs have fallen through, including a float for fintech firm Misys, automotive company TI Fluid Systems and PureGym.

However, an IPO for medical supplier ConvaTec was completed in late October, raising around £1.5bn. Freshfields Bruckhaus Deringer corporate partner Chris Mort led for ConvaTec, while Linklaters partners James Wootton, Dan Schuster-Woldan and Mike Bienenfield led the advice for the banks.

matthew.field@legalease.co.uk

Legal Business

Norton Rose and DLA lose out as Lloyds finalises UK roster

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Adviser reviews DLA PiperLloyds Banking GroupNorton Rose Fulbright
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Lloyds Banking Group panel shrinks from ten firms to eight

Last month saw DLA Piper and Norton Rose Fulbright (NRF) lose out as Lloyds Banking Group (LBG) reduced its UK legal roster from ten to eight firms.

Legal Business

On the bus – Inside the Norton Rose Fulbright masterplan

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Innovation Norton Rose Fulbright
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NRF chief executive Peter Martyr defied expectations to reinvent Norton Rose as a progressive global player over more than a decade. Three years on from its ambitious US tie-up, where is the firm going next?

‘You will have to talk to Peter, we are not authorised to speak,’ says one Norton Rose Fulbright (NRF) partner. It’s a familiar refrain in a firm that – despite its reputation as a friendly place to work – defers to central management. A lot.

Legal Business

Norton Rose Fulbright makes shipping play with Monaco opening

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Europe Norton Rose Fulbright
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Norton Rose Fulbright (NRF) is planning to increase its European shipping and transport offering by launching an office in Monaco.

The firm will open as Norton Rose Fulbright Monaco having gained permission to open in the principality. The firm is looking to build on its shipping and maritime practice in the region.

The office will become NRF’s 54th worldwide and its 13th in Europe. The firm listed as a Monaquese company in September with an office set to open in early 2017.

The firm’s new office will be led by finance lawyer and head of Greece Dimitri Sofianopoulos, who will serve the firm’s shipping and finance clients.

NRF Europe, Middle East and Asia managing partner Martin Scott said: ‘Our shipping and finance practice is widely regarded as a global leader and, as much of its work is derived from businesses located in the principality, it makes sense for us to establish a base there from which to provide an enhanced service to our clients.’

NRF global head of transport Harry Theochari told Legal Business: ‘Shipping and transport has been at the heart of this Firm since it was founded.  We’ve got more than 3,600 legal staff around the world of which over 400 are involved with shipping and transport. Despite the shipping downturn we have continued to invest in our shipping and wider transport practice.’

NRF joins Ince & Co, Hill Dickinson and Gowling WLG as international law firms with offices in the area. Ince was one of the first international firms to launch in the city in 2011 as Ince & Co Monaco SARL. The firm’s office specialises in shipping, yachts and superyachts and commodities trading.

Gowlings’ office specialises in private client work in the country, advising high net worth clients from Russia, Saudi Arabia and China. Hill Dickinson’s office was launched in 2013, servicing the firm’s yacht clients.

The additional European office comes after a renewed period of North American expansion for the global firm. NRF most recently announced a tie up with Vancouver firm Bull, Housser & Tupper, adding the 92-lawyer practice to NRF’s Canadian arm in the its third tie up in the country.

In June the firm also expanded its public finance practice and opened in San Francisco with a team of 17 lawyers, including six partners, from Sidley Austin.

matthew.field@legalease.co.uk

Legal Business

Norton Rose secures another Canadian tie-up with Vancouver firm

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Legal mergers Norton Rose Fulbright
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Norton Rose Fulbright (NRF) has tied up with a third Canadian firm, acquiring Vancouver firm Bull Housser following the acquisition of Oglivy Renault in 2011 and Macleod Dixon in 2012.

Bull Housser, a 92-lawyer firm, handles projects and transactions in fields including energy, mining, infrastructure, transport, mining and commodities. It is one of Vancouver’s largest law firms.

Commenting on the acquisition, NRF Canada managing partner Charles Hurdon, said: ‘Our respective clients want simplified access to our firm across Canada, the U.S. western seaboard and the Pacific Rim. This combination addresses their need for that and provides a Vancouver presence. It also supports our clients with the regional and market knowledge required to capitalize on the domestic and foreign investment and development opportunities in British Columbia.’

Janet Grove, managing partner of Bull Housser added: ‘British Columbia has become a global leader in a range of industries, and we have enjoyed assisting our clients with many projects that have transformed business and the landscape both in British Columbia and elsewhere.’

NRF is no stranger to the Canadian market, first securing a tie-up five years ago when the firm brought Ogilvy Renault into the Norton Rose Group. This was followed a year later by Macleod Dixon which established the group’s first offices in Latin America with outposts in Venezuela and Columbia.

More recently the acquisitive NRF expanded its African offering by entering an alliance with Kenyan law firm Walker Kontos. Nairobi-based firm Walker Kontos has nine partners and 11 fee earners, specialising in banking and finance as well as M&A, project finance, energy, capital markets and real estate. The alliance will be formally launched in October.

kathryn.mccann@legalease.co.uk