Magic circle enjoy strongest year in mainland Europe since 2012

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Magic circle firms have managed their strongest year in continental Europe since 2012, according to Legal Week analysis of the latest deal rankings.

Across Europe’s major regions – Italy, Germany, Spain, France, the Netherlands, Ireland and Belgium – the UK-based firms took a higher proportion of top five spots than both US firms and local rivals, according to Mergermarket's 2018 tables.

In regions such as Germany, Italy and Spain, it was Freshfields Bruckhaus Deringer and Allen & Overy that consistently featured in the top five, while Clifford Chance fared well in France and Linklaters performed strongly in Belgium and Ireland.

It all meant the magic circle firms took 14 of the 35 slots for the seven regions, while domestic firms took 11 places and US firms took 10.

The previous year, in 2017, magic circle firms had taken only nine places, slightly behind domestic and US firms, which each took 11.

The rankings mark a gradual slide for US firms across the continent. In 2015, they secured 16 of the 35 top five spots.

The figures reflect a similar story to UK M&A, where magic circle firms also performed strongly in 2018 after a disappointing year for US firms.

Christoph Seibt, co-head of global listed companies and public M&A at Freshfields, said: “We have a very strong continental European DNA unlike the US firms, partly because we’ve been around for much longer. We are also more cross-border oriented: most of our deals are not restricted to localised regions, but instead work cross-border with our cross-border teams."



Italy

After not featuring in the top five in 2016 or 2017, magic circle firms took thee top spots in 2018.

Freshfields came in first, dramatically jumping up the ranks after being placed at number 16 in 2017. Allen & Overy and Clifford Chance also made big jumps, A&O going from 29th place in 2017 to third place in 2018, and CC going from 23rd place in

2017 to fourth place in 2018.

Domestic firms, such as Legance and Gianni Origoni Grippo Cappelli & Partners, have traditionally held many of the top spots in the market, taking almost all the positions in 2016.

But lead roles on the biggest deal of 2018 – CK Hutchison's £7.2bn acquisition of Wind – were taken by A&O and Freshfields.

Source: Mergermarket. When bars do not add up to five, positions were taken by other UK or European firms.



Germany

Traditionally a strong market for magic circle firms, Freshfields, A&O and Linklaters all secured top five positions in Germany.

Freshfields, which has featured in the top five in Germany for seven consecutive years, led the rankings.



Freshfields' Seibt pointed to the firm's 175-year history of working in Germany and said the firm's strategy was to integrate its continental European offices in a bid to get cross-border M&A work.

The biggest deal of 2018 in the region was advised on by Linklaters, Freshfields and Hengeler Mueller when E.ON acquired a controlling stake in renewable energy business Innogy from German rival RWE for £38bn.

Source: Mergermarket. When bars do not add up to five, positions were taken by other UK or European firms.



Spain

Magic circle firms took three of the top five slots in Spain. The performance of UK-based firms in the country has remained steady for several years. But US firms remain unable to grab a space in the top five, having failed to do so since 2

009.

Linklaters, Freshfields and A&O were three of the 10 firms advising on Spain's biggest deal of 2018 – the £14.4bn takeover of Spanish motorway operator Abertis by a consortium of European companies.

Source: Mergermarket. When bars do not add up to five, positions were taken by other UK or European firms.



France

US firms had a stronger showing in France, where Clifford Chance was the only UK-based firm to make the top five.



US firms have made a concerted hiring push from UK firms in the country, with Kirkland & Ellis hiring two Linklaters partners for a Paris launch last year and Freshfields' Paris head leaving for Jones Day last April.

Domestic firms struggled to gain market share though, with last year's leader, Bredin Prat, the only one in the top places.

Source: Mergermarket.

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