Maclays plays down rumours of merger with Addleshaw Goddard

Rumours are circulating that English firm Addleshaw Goddard has negotiated a merger with Maclay Murray & Spens LLP, though both firms have played down the suggestions.

According to The Lawyer, the deal was discussed over the summer, with each firm’s practice heads meeting to discuss the deal.

A spokesperson for Addleshaws said: “We’ve consistently said that a merger at some point in the future is a possibility we’d consider. It’s an option we keep under regular review, but there’s nothing to report.”

MMS also played down the rumours.

A spokesperson for the firm said: “We do not comment on particular rumours or speculation.

“MMS keeps in touch with other firms on an ongoing basis and sometimes such discussions encompass the possibility of collaboration of some kind.

“Many of these conversations are exploratory and come to nothing.

“Should any such discussions develop into something more substantial, we would communicate that first to our teams and then our client base and the media.”

Despite this, the merger is believed to be going ahead on May 1 next year.

If the firms merge the turnover of the combined firm would be in the region of £236m.

Addleshaws turnover rose 12 per cent last year, going from £171.4 million to £192.5m, while Maclays saw a modest increase of £200,000 to £43.5m.

Net profit at the firm went up by seven per cent, from £12.2m to £13m, with average profit per equity partner (PEP) standing at £283,000.

Addleshaws PEP, meanwhile, stands at £491,000.

Speaking to Scottish Legal News in late 2014, chief executive, Kenneth Shand said he was cautiously optimistic about the prospects of Scots firms.

At the time, he countenanced the possibility of more mergers, saying: “Yes, I think it’s quite likely that there will be more mergers.”

He added, however: “Whether they are successful or not will depend on the drivers in each particular case.”