Calin Zamfirescu si Asociatii (CZA) and Racoti-Predoiu, two of the best-known legal firms in Romania, have decided to merge. The merger process will most likely be completed in the first half of this year.
This is the first important merger on the Romanian business law market, which is expected to undergo a consolidation process over the next few years.
"The main reason we decided for the merger was due to how the two companies complemented each other. CZA has very good banking, litigations and liquidation experience, while Racoti-Predoiu has experience in the field of mergers and acquisitions and privatisations," Calin Zamfirescu, CZA partner, told Ziarul Financiar.
"In addition, the two companies have similar professional cultures and standards, and the merger will help us serve our clients better," added Catalin Predoiu, Racoti-Predoiu partner.
Together, the two firms will have over 30 lawyers, five of which will be partners - three from CZA and two from Racoti-Predoiu. The name of the new company is yet to be revealed, however, officials from the two firms have confirmed that it will include both "brands".
"The five-partner and over-30-lawyer formula is just for the beginning. We intend to grow and this, implicitly, will entail attracting new partners and associates.
"We will be an open firm," said Mr Zamfirescu, who is also the chairman of the National Union of Bar Associations of Romania. Current estimates put the business law market at 25-30 million dollars, divided into three main segments.
The first segment comprises the three leading law firms: Linklaters (one of the largest European law firms), Nestor Nestor Diculescu Kingston Petersen (NNDKP) and Musat si Asociatii.
The second segment comprises 10-15 medium-sized law firms, including Popovici si Asociatii, Voicu-Filipescu, Racoti-Predoiu, Calin Zamfirescu si Asociatii, Badea Georgescu si Asociatii, Bostina si Asociatii, Salans, Cameron McKenna and Stoica si Asociatii.
The third segment is divided among several dozen law firms with many partners and employees. This all shows that the market is very fragmented and a consolidation process of mergers or attracting major partners from other companies is expected.
The process will also be given a boost by the possible entry of major European law firms, which will challenge Romanian companies for their market positions and clients.
According to market rumour, other Romanian firms are also contemplating mergers.
"Consolidation is a natural process, yet it has its limitations. There are many talented lawyers in Romania that work independently and successfully.
As in countries with developed professions, our professions will also develop by diversification so as to include both collective practices and individual practices, each with their own client segment," Zamfirescu explained.
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