International firms Shearman & Sterling and Hogan Lovells (pictured above) have called off a proposed merger after weeks of talks.

A tie-up between the two firms would have been one of the biggest in recent years, creating a $3.6bn (£3.43bn) practice - comfortably inside the global top five.

In a joint statement, the firms said: ‘As has been widely reported, our firms have been in preliminary and exploratory conversations regarding a possible combination. After careful consideration, we have mutually agreed that a combination at this time is not in the best interest of either firm. We have been deeply impressed with each other’s business, practices and people and wish each other continued success.’

Hogan Lovells entered the global top 10 following the merger between US firm Hogan & Hartson and City firm Lovells in 2010. It boasts some 2,800 lawyers and announced record gains in its 2021 fiscal year, reaching $2.61bn in total global revenue.

Shearman & Sterling has over 850 lawyers around the world and reported $1.01bn in gross revenue in 2021, its best financial year on record. However Shearman, an original member of New York’s finance law elite, is perceived to have fallen behind leading US rivals such as Latham & Watkins and Kirkland & Ellis over recent years.