Taylor Wessing is more likely to merge with a local practice in Hong Kong than to set up in the region organically, the firm indicated last month, as it continues to expand its Asian footprint after taking over Singapore alliance firm RHT Law in March.
Tim Eyles, the firm’s London-based managing partner, told LB that the firm would not go into Hong Kong on its own; rather, it would look for a local practice to tie-up with.
‘The next place we want to have a presence in is Hong Kong. It’s not an easy market, so we’re taking our time. We’d like to merge with a local practice rather than set up a greenfield office,’ explained Eyles.
His comments come off the back of the firm’s full launch in Singapore, where it will now operate as RHTLaw Taylor Wessing. Through the acquisition, Taylor Wessing has taken on 60 new fee-earners, including 29 partners.
‘Asia is a must and not a preference,’ said Eyles. ‘And Singapore is a hugely important financial hub for other parts of south-east Asia and India.’
The two firms struck up an alliance in August last year. The move came just months after RHT formed when a number of lawyers defected from local outfit KhattarWong to set up the new practice. RHT has significantly grown since its May 2011 launch, with five new partners joining in under a year.
‘Asia is a must and not a preference. Singapore is a hugely important financial hub.’
Tim Eyles, Taylor Wessing
Under the new agreement between Taylor Wessing and RHT, members of the Singaporean firm will sit on the UK firm’s international board. ‘Having this presence will help to further internationalise the business,’ commented Eyles.
Taylor Wessing’s move into Singapore follows a raft of rival firms. Magic Circle firm Allen & Overy called off talks to join forces with Allen & Gledhill, Linklaters’ former alliance partner in March.
Had the two reached an agreement, they would have been forced to strike up an alliance, as local Bar rules prevent full mergers.
However, in February the Singapore Ministry of Law announced that it would be relaxing the rules governing its legal sector by allowing foreign firms to take stakes in local outfits.
Expectations are that foreign firms will flood into the market once it opens up, as Singapore increasingly becomes a hub for corporates looking to do business in countries such as Indonesia, Thailand and Vietnam. The city is also an important arbitration centre for both Chinese and Indian clients.
Withers, Lawrence Graham (LG) and Squire Sanders are the latest entrants to the Singapore market, which is also becoming an international hotspot for the wealthy. Both LG and Withers are set to launch private client practices in Singapore, while Squire Sanders has moved in after taking three partners from rivals Bryan Cave.
The news comes as a number of firms have set up offices in Seoul after the Korean authorities relaxed their rules, allowing foreign practices to operate in the region.
Most recently US firm Covington & Burling announced it had applied to the Korean authorities to open an office in Seoul. The South Korean office will mark the third Asian outpost for the US firm, with plans to open in Shanghai during the summer. The firm has had a Beijing presence for the past four years.
The Washington DC-based firm has hired William Park from local Korean firm Apex, where he was a founding member. Park will be joined by counsel Daniel Spiegel, who was formerly the ambassador to the UN until 2008 and will transfer from the firm’s DC office to help launch the Seoul offering. Covington’s management chair Tim Hester said there are likely to be two to three associates in the office as well.
‘We have focused on building a presence in Asia for a long time. We had an increased demand from clients to open an office in Korea, but wanted to wait for the right person to carry out the strategy for us,’ commented Hester.
Samsung is one of the firm’s largest clients, and Covington expects to take on a raft of outbound work for the Korean electronics giant. Hester said the firm also hopes a presence in Seoul will attract further Korean clients looking to do business outside of the Asian country.
He said Park will bring with him a healthy transactional practice but that the firm also expects to take on a fair amount of antitrust, IP and trade issue work, as well as boycott and sanctions work.
Covington marks the seventh US practice to signal intentions to open in Seoul since the regulations were relaxed late last year, along with Paul Hastings, Cleary Gottlieb Steen & Hamilton, Ropes & Gray, Squire Sanders, McDermott Will & Emery, and Simpson Thacher & Bartlett.
The UK firms, however, have been slow to set up shop in South Korea, with Clifford Chance the only firm to apply for a licence thus far. One managing partner at a rival Magic Circle firm said he didn’t see the need to have a Korean office because the firm could easily manage Korean relationships from its Chinese offices.
Expectations are that a continual flow of foreign firms applying for licences is unlikely to stop any time soon. UK firms have been able to apply for local licences since July, after South Korea and the EU struck up a trade agreement. A similar agreement, ratified in November, allowed US firms to do the same.