WHAT suits Allen & Overy may not suit the rest of the magic circle, new research shows.
Allen & Overy announced last week that it was launching two Australian offices in a bid to tap investments flows between the land down under and China and Japan. The move would increase its Asian reach, it said.
As the mega firm scoops up 17 senior Australian partners to open new offices in Sydney and Perth, other top firms in the United Kingdom have given the lowdown on why it may not appeal to them.
Freshfields Bruckhaus Deringer and Linklaters have said they will not follow their competitor to Australia.
Freshfields joint senior partner Konstantin Mettenheimer said that opening an office in Australia was not necessarily the best way to tap those regions, The Lawyer reports.
“[Australia’s] a strong economy with a very good existing legal infrastructure,” he said, The Lawyer reports.
“However, the domestic market is relatively small and it’s very well-serviced by sophisticated and competitive local firms. It’s also difficult to position Australia as a gateway to Asia due to the distance and differing time zones.”
Linklaters, as well, signaled non interest in Australia. It suggested Australia is already well serviced, and has low levels of profitability.