Despite the current crisis plaguing King & Wood Mallesons’ European arm, its Asia-Pacific operations remain unaffected, with business carrying on as usual, according to a Hong Kong-based spokesperson for the firm.

“KWM in APAC and EUME are financially and legally separate entities,” the spokesperson said. “The impact of the current difficulties in Europe is contained to that region. Importantly, these issues have not negatively impacted the ever-widening and deepening collaboration between China and Australia.”

Earlier this week, the European unit disclosed that it was in talks with potential merger suitors. “King & Wood Mallesons EUME is pleased to confirm that it has received a number of indicative purchase offers,” the firm said in a statement. “The management team and its financial advisers have reviewed these and are now entering into detailed discussions with a small number of parties.” 

KWM’s European business this year has run into financial difficulties as a number of high-profile partners departed. As rumours swirled that the European business would be recapitalised by the Chinese business, Stuart Fuller, KWM’s global managing partner, also stepped down. 

The crisis deepened in November as a bailout proposal to the European partners – one that required them to commit to a 12-month lock-in period and stump up some additional capital – was rejected. KWM’s European business recently announced that it could not guarantee salaries beyond February 2017.  

Since then, law firms such as DLA Piper, Winston & Strawn, Greenberg Traurig and Dentons have been named as potential suitors. The latter two have ruled themselves out of the running. 

However, things are far more stable in the Asia-Pacific region, particularly in China, Hong Kong and Australia. KWM insists that its global brand is “incredibly strong” and will continue to attract the market’s top clients and best talent.

“We are one of the fastest-growing legal brands in the world. In just four years, the firm has become one of the leading legal firms globally. KWM sees Asia as the most rapidly growing legal market in the world,” said the spokesperson.

According to the ALB Asia Top 50 rankings, the firm is the eighth-largest firm in the region (ex-Australia). In July, the 2016 Acritas Asia Pacific Law Firm Brand Index named KWM as the leading legal brand in Asia for the second year running.