International firms target local mergers in regional hub
Asia’s burgeoning economic growth coupled with new initiatives from the Association of Southeast Asian Nations (ASEAN) community has seen further interest in Singapore’s legal market spike as Global 100 firms explore new ventures in the city-state.
Eversheds revealed in March it is in talks with Singapore’s Harry Elias, which has about 60 lawyers. Led by managing partner Philip Fong, the full-service law firm has a strong dispute resolution practice, which includes expertise in international arbitration, and a well-regarded matrimonial and family law practice.
Eversheds has been open about its desire to secure international expansion, and has had an office in Singapore since 2009. The outpost is currently led by managing director Oommen Mathew.
At the time Legal Business went to press, talks were ongoing although Eversheds would not confirm discussions.
‘Growth in Asia is a key part of our global strategy and we will continue to look at opportunities with potential partners, including firms with whom we have a strong existing relationship,’ said a spokesperson.
Meanwhile, Gowling WLG has been open about its plan to deliver a new tie-up by 2018, targeting Singapore and Germany.
In Singapore’s tightly regulated legal market, mergers would allow the firms to gain access without being subject to local licensing requirements that only allow overseas firms to practise Singapore law in permitted areas and are subject to renewals. A full merger would need approval from Singapore’s Ministry of Law.
The ASEAN Economic Community (AEC) blueprint was adopted by the region’s leaders late last year, providing broad directions through strategic measures for the AEC from 2016 to 2025. The head of Gowling WLG’s Singapore office Andrew Dobson said these initiatives will help Singapore grow significantly over the coming years. He added Singapore has emerged as a key financial centre for the ASEAN region.
‘The ASEAN community is bigger than the EU, it’s a bloody big space. Singapore is the hub of that enormous market – Indonesia, Malaysia, Philippines, Vietnam, Myanmar, Laos,’ Dobson said. ‘The question “why are all the law firms here?” is because we feel we’ve got to be. If you’ve got a future in the world, this is a fast-growing place.’
Eversheds Asia managing partner Stephen Kitts describes South-East Asia and North Asia as two distinct markets with different dynamics. With offices in Singapore, Hong Kong, Japan, China and India, he sees South-East Asia as a strategically important commercial region.
‘Singapore has become a very successful hub for international arbitration, it’s developed a strong reputation. The Singapore International Arbitration Centre has very much come to prominence in the last ten to 15 years, the government has put a lot of weight behind it and promoted it very hard and it’s become extremely credible.’
madeleine.farman@legalease.co.uk