Simmons & Simmons and Mayer Brown have called off merger talks, the two firms said in a joint press statement sent Tuesday.
The statement confirmed that the two firms have held preliminary talks about a potential merger but have jointly decided not to go through with a combination.
It read: "Simmons & Simmons and Mayer Brown have held preliminary discussions with regard to the potential for a merger. Mergers are complex and present a number of issues which need to be resolved before discussions can proceed. We have concluded that a combination between our firms is not the right option. There is, however, considerable goodwill and continuing respect on both sides."
The news comes after Simmons discussed the topic in a partnership meeting on Friday, after first informing partners the previous week that talks had been held.
While the firms have not said why the talks were called off, Simmons partners were understood to have been initially attracted to the deal by the boost it would give to its China and Germany offerings. However, some partners had questioned how the two firms could combine their London presence, which they found less complementary.
Simmons partners had also questioned if they wanted to merge with a larger and more profitable firm.
Simmons has yet to announce its 2009-2010 financial results, but revenue and profits are understood to be down from the previous year's turnover figure of 291.3 million pounds and profits per equity partner of £520,000 pounds.
Mayer Brown's 2009 financial results revealed that revenues at the firm had fallen by almost 14 percent over the year, with the firm's top line slipping to $1.12 billion, down from $1.29 billion.
The Chicago-based firm's London office also posted a double-digit decline in revenues, with turnover falling by 16 percent to 93.8 million pounds, down from 111.6 million pounds in 2008, while PEP fell 4.5 percent in 2009