One of the most talked about law firm mergers in recent memory has finally been consummated; both firms joined forces - for better or for worse - on Saturday. Few would contest that the amassed ranks of lawyers and locations that the combined entity boasts will be impressive enough to put shivers up many competitors' spines.
However, the new firm's launch motto - "A new kind of international law firm... Because the world is changing" is perhaps true on a number of levels for many concerned, not least all the partners who have chosen to no longer be part of the firm.
Robert Lewis, Lovells' former Beijing managing partner, quit the firm to join local outfit Allbright as a senior international legal consultant. Although the loss of a managing partner of the caliber of Lewis is most certainly a body-blow for the newly formed alliance, it should be noted that his departure was considered somewhat imminent. As one source close to ALB noted: "It's a loss, but we could see that it was going to happen given Robert's missionary-like zeal to help develop the local legal market in China." The rationale belying Lewis' move nevertheless is fine food for thought for anyone interested in how the market will develop over the next few years (read more about Lewis' move here).
The reasons behind two similar departures this week is perhaps just as clear. In an e-mail to clients last week, Hogan & Hartson's former Hong Kong managing partner Gordon Ng announced that his eponymously named firm had terminated its alliance with Hogans and would instead be joining forces with O'Melveny & Myers. "Effective 1st May 2010, Hogan & Hartson will change its name back to Gordon Ng & Co and we will commence an association with O'Melveny & Myers. Our relationship with you remains unchanged," the e-mail read.
Hogan & Hartson 'localised' its Hong Kong operations midway through last year (allowing it to practice Hong Kong law under the name Hogan & Hartson), suggesting perhaps that Gordon Ng & Co's days as Hogans' Hong Kong ally - regardless of the latter's merger with Lovells - were already numbered.
Connected to Hogans' Hong Kong localisation was a reshuffling of its management on the Mainland that saw some high-profile partners frozen out of the firm's ruling cadre. One of these was Arthur Mok, who although installed as Hogans' Shanghai managing partner was overlooked for the Greater China leadership role, which was jointly filled by the long-serving Jun Wei and Steven Robinson. In this context, Mok's departure to Ropes & Gray is also not surprising, given the firm's ambitious expansion plans in China and the role that had been outlined for Mok in them.
Mok's deal list includes representation of Cathay Industrial Biotech in a preferred equity financing, which is believed to be the largest venture capital financing completed to date in China. Mok also advised Hutchison Medipharma on its landmark drug discovery partnership with Eli Lilly & Company, the first-ever major drug discovery partnership between a multinational pharmaceutical company and a China-based biotech company.
The firm says that Mok's appointment is a precursor to establishing a second Greater China office, in Shanghai, and that Mok would be heavily involved in the process.
Related stories: