Transatlantic tie-up extends reach of City firm Gouldens across the globe

'CULTURAL FIT': Gouldens and Jones Day merger creates world's sixth largest law firm

The partners at City firm Gouldens last week voted to become the latest to tie up with a US practice, and will be part of the sixth largest law firm in the world after merging with Jones Day.

The merged firm will practise in London as Jones Day Gouldens and will have around 200 lawyers.

Globally, it will have more than 2,000 lawyers in 27 offices; 12 in the US, eight in Asia and seven in Europe.

An office in Beijing will open shortly.

Russell Carmedy, Gouldens' joint managing partner, will be head the London office.

He will be supported by Charters Macdonald-Brown, currently Gouldens' other joint managing partner, and by Robert Thomson, currently head of Jones Day's existing London office.

The combined practices are likely to occupy offices currently under construction at 21 Tudor Street, close to Blackfriars bridge.

The merger will extend Gouldens' international reach to some unusual jurisdictions for an English firm, as Jones Day has offices in Taipei, Sydney and Menlo Park in northern California.

Jones Day also has an exclusive relationship with Indian firm Pathak & Associates.

Gouldens was quick to stress that its unique trainee solicitor scheme - which sees trainees take in work from across the firm rather than sit in a series of different departments - will stay in place.

Mr Macdonald-Brown said the 'cultural fit' and international reach were prime drivers for Gouldens' decision, as was Cleveland-based Jones Day's spread around the US.

He argued that there were greater cultural differences with Wall Street firms, which made such a merger unpalatable to Gouldens.

He said partners in the Paris and Frankfurt offices reported that Jones Day took a 'hands-off' approach to its overseas offices, which are mainly staffed by local lawyers.

He was confident that Gouldens would be able to maintain its distinctiveness.

Mr Macdonald-Brown added that they also liked the way Jones Day integrates its offices worldwide.

By having a central profits pool, it eliminates offices competing with each other, he said.

Gouldens is well known for being highly profitable and Mr Macdonald-Brown acknowledged that the investment Jones Day makes in its international network - not something Gouldens partners have ever had to do - could impact on that profitably.

However, he argued that the merger was about taking a long-term view, as it would give Gouldens access to higher-level deals.

'If it means we earn a bit less in the short term, then so be it,' said Mr Macdonald-Brown.

Neil Rose