According to a report from the Financial Times, Allen & Overy has conceded the ‘compelling synergies’ between it and O’Melveny & Myers were not quite enough to seal a long sought-after tie-up, having today (2 September) said they were calling it a day on merger talks.
The news comes after months of market speculation since a possible merger between the Magic Circle giant and the Los Angeles-bred firm first emerged in spring 2018.
The negotiations faltered over the valuation of the two businesses, according to a person close to Allen & Overy, compounded by issues including Brexit and fluctuations in the price of sterling and the dollar.
According to the FT the two firms had already faced difficult negotiations over governance, the name of the combined company and how to match their differing remuneration structures.
Full Content: Financial Times