The merger unites Pravis: Reznikov, Vlasenko and Partners, and Magister & Partners
Two of Ukraine’s top law firms have signed an agreement to merge, establishing a clear-cut market leader. Lawyers said the merger also signifies a growing need by top-tier Ukrainian law firms to consolidate in order to improve their competitiveness, as international law groups intensify efforts to move into the market, searching for lucrative contracts.
The merger, announced March 1, unites Pravis: Reznikov, Vlasenko and Partners, distinguished for representing Viktor Yushchenko in the Supreme Court hearings during the 2004 election contest, and Magister & Partners, a top law firm that has represented Ukraine’s interests in international trade negotiations and disputes.
About 60 lawyers will work for the merged firm, which will retain the Magister & Partners name. The two firms posted combined incomes of $12.8 million last year, which they claim to be the largest of any Ukrainian law firm. The merger is expected to be completed this spring.
A perfect match
While Pravis is known to have a solid court litigation practice, Magister has been stronger in the corporate, trade and finance sectors.
Serhiy Piontkovsky, a partner with Baker & McKenzie, one of Ukraine’s top law firms, described the merger as a “perfect match.”
“They complement one another.
Pravis has a very strong litigation practice,” Piontkovsky said. “Magister & Partners has strengths in its financial, banking, tax and corporate practices.”
Oleg Riabokon, who will continue serving as the managing partner of Magister & Partners, said the new firm will be better able to compete following the merger.
“The firm will continue positioning itself as a major player in the region servicing international clients, as well as Ukrainian and Russian corporations,” Riabokon said.
Merger movement
Oleksiy Reznikov, one of the two star lawyers at the Pravis firm, along with Serhiy Vlasenko said the merger signifies a positive sign for the legal services market, adding that more consolidation may be on the horizon as Ukrainian-owned law firms brace for stiff competition from international law groups moving in.
“We are the first top Ukrainian firms to have merged,” Reznikov said.
“Take Russia for example: There were no such mergers among larger firms there, and what happened? Large international firms came in and occupied certain niches of the legal services market,” Reznikov said.
Before merging, Pravis and Magister & Partners were two of only a handful of leading Ukrainian law firms. Others include Shevchenko, Didkovsky & Partners, Vasyl Kisel & Partners, Konov & Sozanovsky and Salkom.
Their primary competitors are Ukrainian branches of international law firms, such as Baker & McKenzie, Salans and DLA Piper. Legal departments of the Big Four consulting firms in Ukraine, such as KPMG, PricewaterhouseCooopers and Deloitte are also big competitors.
Piontkovsky described the Magister-Pravis merger as a “positive step for the Ukrainian legal services sector.”
“The level of professionalism involved will rise, which makes us happy, as in many cases we have to work with other firms, and it is easier to work with professionals,” Piontkovsky said, adding that both Pravis and Magister “are of this caliber.”
In recent years, some international law firms have moved to strengthen their position on the Ukrainian market by setting up affiliations with local law firms. One such partnership was created in September 2003, when Squires, Sanders & Dempsey inked an affiliation agreement with Kyiv’s Silecky Firm.
Partnerships and mergers have helped firms get the edge in an increasingly competitive and busy Ukrainian legal market.
Magister’s Riabokon said that increased business activity has fueled demand for larger top-end firms capable of handling numerous complex cases.“It is no surprise anymore to have 10-15 lawyers working on one transaction at the same time,” Riabokon said.
