U.S.-based Biglaw firms remain eager to get out of China thanks to a market slowdown amid geopolitical tensions, but the latest firm to consider shuttering an office there has a different reason for doing so.
Eversheds Sutherland — a firm that brought in $1,439,118,430 gross revenue in 2023, putting it at No. 36 in the Global 100 — is thinking over the closure of its Beijing office, thanks to its relationship with King & Wood Mallesons. Last year, the firms entered into an exclusive referral alliance whereby KWM would refer all outbound European, Middle East, Africa, and South America work to Eversheds, and Eversheds would refer all China work to KWM.
In a statement, Eversheds said the future of its Beijing office was “under review.” Law.com International has additional details:
Since inking the alliance with King & Wood, Eversheds has been absorbing Europe-based King & Wood partners, which the Sino-Australian firm inherited through a 2013 merger with legacy British practice SJ Berwin. That entity went bankrupt in 2017.
In February, Lee Ranson, chief executive of Eversheds Sutherland’s international arm, said that a three-year review mechanism is in place for its deal with King & Wood, and until the three-year mark, there was no plan to formally consolidate both their practices in China.
The firm’s statement said no final decision has been made regarding the future of the Beijing office, but two people at the firm said they believed the decision has been made.
One person said that a closure marks “phase two” of the alliance and they expected eventually all of the U.K. firm’s mainland China-based lawyers will be absorbed by King & Wood in China, much like the process the two firms went through in Europe. The firm did not respond when asked about this. King & Wood declined to comment.
If and when the Eversheds Beijing office closes, lawyers are expected to relocate to the firm’s Shanghai office. The firm has another office in Hong Kong, and is currently seeking approval to open an office in Singapore. In its statement, Eversheds said Asia remains a “key strategic jurisdiction for the firm.” Eversheds would be the first U.K.-based firm to close a China office amid the current mass departure of law firms.
Which Biglaw firm will be the next say zàijiàn to its offices in China? You can email us or text us (646-820-8477) if you have any intel. Thank you.
Eversheds Mulls Beijing Closure [Law.com International via American Lawyer]
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