New 'legal giant' emerges

The directors from both firms have already approved the merger, which remains subject to regulatory approval. According to a report on the Legalbrief Today site, the combined firm will begin operating in September with some 127 directors in Johannesburg and Cape Town. Chris Ewing will be appointed CEO and Dines Gihwala will be chairman. Says Gihwala, current chairman of Hofmeyr: 'Both firms are the champions of empowerment in the legal profession. Some 30% of the shares post merger will be held by black directors and 24% will be held by women.' Ewing, current chairman of Cliffe Dekker, commented: 'Our research shows that we will be the largest law firm in the country and gives us deep industry skills as well as the capacity to further specialise and develop our service offering, while ensuring that clients benefit from our strengthened capabilities, diversity and services locally and internationally.' Full report on the Legalbrief Today site

A flurry of recent deals in SA's legal profession suggests more mergers could be in the pipeline. Two years ago, corporate legal giant Edward Nathan announced plans to merge with Sonnenberg Hoffmann & Galombik. At the time the merger was the largest of its kind in SA in terms of partners and staff, numbering more than 300, notes a Business Day report. Edward Nathan Sonnenbergs now has 136 directors and executives, 335 professional staff and total of 650 staff. Prior to that, Cliffe Dekker entered into an alliance with the world's second-biggest law firm, DLA Piper. Last year, commercial law firm Webber Wentzel Bowens joined forces with niche practice Mallinicks. They now have 133 partners, 280 lawyers and a total of 530 staff. Two years ago, Werksmans Attorneys entered a merger with black commercial law firm Nalane Manaka Attorneys. The merger was the largest of its kind at the time, between a major law firm and a black law firm in SA. Earlier this year, Routledge Modise joined international law firm network Eversheds to form an association. By being part of the Eversheds group, Routledge Modise ranked 34th among the world's top 100 law firms and boosted its international presence. Full Business Day report

The announcement of the merger comes at a time when the SA legal profession is undergoing rapid change, notes a Bottom Line commentary in Business Day, noting law firms must either scale up or become niche practices. However, legal analysts say SA's market place differs from those of the UK and US, where mergers are on a big scale. It is argued that relationships are more important than size at this stage for law firms to be world-class. Bottom Line in Business Day