(From left) Announcing the merger are Dieter Yih, co-founder and partner of Kwok & Yih; Robert Milliner, chief executive partner of Mallesons Stephen Jaques; and Larry Kwok, founder and managing partner, Kwok & Yih

The importance of the China market was a key driver behind the merger, which is one of the largest tie-ups the local legal market has seen.

"We have listened to our clients," said Mallesons' chief executive partner Robert Milliner. "They have liked what we offer in Hong Kong and China but wanted a broader range of services, more local knowledge and language skills and a presence in Shanghai and a bigger presence in Beijing. With Kwok & Yih, we can now meet their needs in Hong Kong and China by offering full service international capability in corporate (M&A), banking and finance, litigation, construction and projects."

Mallesons Stephen Jaques opened its Hong Kong office in 1989, and started Beijing operations in 1993.  Hong Kong is now Mallesons' largest office in Asia, and the firm's equal third largest office, behind Sydney and Melbourne.

Ideal entry point

"We saw Hong Kong as the largest capital market in the region and a good platform for entry into the China market," Mr Milliner said. "The firm is now well established in Hong Kong and the expansion into China is in response to the increasing need for enhanced China capability to service our clients. Expanding the Hong Kong office has given us a greater capacity to meet clients' needs in the region."

Having a Hong Kong partner enabled the firm to boost its corporate capability through local knowledge and service, he added. "We were looking for the right platform for growth in this area and the merger with a top local firm such as Kwok & Yih was the natural step in this process.  Kwok & Yih has built an outstanding reputation in Hong Kong and China in a broad range of corporate and China work."

The merger will also further strengthen the firm's international profile, Mr Milliner said.

"When building an international practice and working on top-end complex work, it requires more of a regional capability. We have selected Hong Kong as our base because many of our clients are located there or have based their regional expansion plans around Hong Kong and China. We are aiming to use our Hong Kong base to replicate the same leading position that we hold in Australia, in Asia."

Benefits of local knowledge

Feedback from clients reinforced the need for the firm's partners and lawyers to have local knowledge and language skills, he said.

"This merger is very much a blending of two cultures. We have combined the best of international practice with local knowledge, language skills and partners with terrific skills sets. Both client bases will benefit from the enhanced international capability we can now provide.

"With this increased capability, Mallesons will be a real and well credentialed alternative to the UK magic circle firms and US firms operating in Hong Kong and China. But we have still got work to do and the market still has to recognise this union. We don't underestimate the environment we're in. It is very competitive."

In other international legal tie-ups in Hong Kong of recent years, US firm Paul Hastings allied with Koo and Partners, while British firm Dibb Lupton Alsop merged with Lui & Carey. In another move, US firm Squire Saunders & Dempsey joined with Hong Kong-Canadian practice Boughton Peterson Yang Anderson.

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