A couple of months after the collapse of merger negotiations between Shearman & Sterling and Hogan Lovells, the American firm has announced a tie up with another London-headquartered firm, Allen & Overy.

Set to be voted on by each firm's partners this summer, should the deal go ahead, it would lead to the formation of super-firm with $3.4 billion in combined revenue and nearly 4,000 lawyers, including 800 partners globally (30% in north America, 30% in the UK, 40% in the rest of the world), across 49 offices.

The merger, the first between leading American and British law firms for almost a quarter of a century, will allow the New York based Shearman & Sterling to remain competitive with rivals Latham & Watkins, DLA Piper and Kirkland & Ellis.

Adam Hakki, who was elected Shearman & Sterling’s senior partner in April, stated “This combination is about more than scale. It is about shared values and vision. Each of our firms was born in one of the world’s financial capitals and we have both developed stellar reputations based on an unwavering commitment to delivering quality for all our clients.”

For Allen & Overy, meanwhile, the merger "supercharges our ability to serve clients in the US market, which has long been a strategic priority, and strengthens the core of our business around the world,” according to A&O senior partner Wim Dejonghe.

Shearman & Sterling were advised on the deal by Davis Polk, while Allen & Overy were represented by Simpson Thacher.