Clifford Chance (CC) has knocked magic circle rival Linklaters off the top spot in the latest European M&A rankings amid evidence that the long-predicted recovery in deal activity is finally becoming a reality.

The latest quarterly rankings from Mergermarket show an increase of 20% in M&A activity across the continent against the equivalent period last year, with overall deal value up from €330bn (£226bn) to€400bn (£272bn).