Swiss firm SG Fafalen and King & Wood have terminated the alliance struck less than 12 months ago as speculation mounts that the PRC giant is trimming excess fat before embarking on an aggressive expansion drive in the SAR.

“After unsuccessfully attempting to combine our culture and operations with [King & Wood], we have resolved to spin off and to resume our independent legal practice in Hong Kong,” the Swiss firm said in a statement.

The two firms announced a tie-up in March 2010 under which the SG Fafalen & Co Hong Kong transferred all of its activities, client relations and staff to King & Wood in Hong Kong. SG Fafalen will once again link up with local Hong Kong player Huen & Partners.