MERGERS: leading in Europe and second to Skadden Arps in deals for world's largest firm

Magic circle firm Clifford Chance has knocked rival Linklaters from the top spot in the European merger and acquisitions (M&A) market, figures for 2003 have shown.

Data compiled by analysts Merger-market revealed that Clifford Chance not only completed the greatest number of European deals in 2003 (216 compared to Linklaters' 202), but also had the highest overall deal value - 163 billion (114 billion) compared to 135 billion for Linklaters.

Confirming the strength of UK firms in Europe, City firms Freshfields Bruckhaus Deringer, Allen & Overy, and Slaughter and May all featured in the top ten for Europe-wide total deal value.

The remaining top ten firms were American, with Skadden Arps Slate Meagher & Flom leading the US pack.

Linklaters retained its top ranking for deal value in the domestic market.

It completed deals worth 74 billion in the UK, compared to 67 billion for second place Clifford Chance.

M&A figures from analysts Thomson Financial for the year 2003 showed the dominance of US firms in the global market.

Skadden Arps topped the table with an overall deal value of $176 billion (96 billion), and 191 deals completed during the year.

Clifford Chance took second place with 293 deals worth $154 billion.

City firms Freshfields, Allen & Overy, Slaughter & May and Herbert Smith, ranked with its German partner Gleiss Lutz and Benelux partner Stibbe, all made it into the top 20 for deal value.

Higher deal value indicates bigger deals and is often considered more important than number of deals.

David Childs, Clifford Chance's global corporate practice area leader, said: 'This is the first time we have topped the European table, and it is a culmination of ten to 12 years of effort.

'Last year was more difficult than 2002.

Work levels started to fall out at about March when the invasion of Iraq was looking likely, and didn't recover until September.

'As one of the few optimists, I expect we will have a much better year next year, with much more consistent activity levels.'

He added: 'Overall, we have not seen huge advances by US firms in the European market.'

Rachel Rothwell