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Shaking it up As more global law firms establish offices in Brazil, some have tied-up withlocal firms while others remain unattached. Legal Business finds out who has the right mix. By Becky Pritchard The big news in the Brazilian legal market has been the surge in the number of international players joining the party. UK and US firms, including Squire, Sanders & Dempsey, DLA Piper, Simpson Thacher & Bartlett and Mayer Brown, have all set up shop in São Paulo in the past two years. The new arrivals join those who have been resident for some time, including Allen & Overy, Linklaters, White & Case and Clifford Chance. The number of Global 100 firms in São Paulo, Brazil’s key commercial and financial centre, has grown from six to 12 since 2007. For the most part, these global giants have been happy to practise only US and English law, leaving the domestic work to the Brazilian firms. For example, although Clifford Chance advised Royal Dutch Shell on its entry into Brazil’s ethanol market through a $12bn ($ refers to US dollars in all instances) joint venture earlier this year, it was 130-lawyer local firm Souza, Cescon, Barrieu e Flesch that advised on the Brazilian aspects of the deal. But, this attitude is changing. Many international firms now want more serious, exclusive relationships with local firms – the law firm equivalent of moving from casual dating to full-blown marriage. Bar regulations mean that foreign firms can’t practise Brazilian law, so must ally themselves with a domestic firm to offer local expertise. Mayer Brown announced in December 2009 that it had formed an association with oil and gas specialist Tauil & Chequer, while DLA Piper signed a co-operation agreement with corporate firm Campos Mello in March this year. It’s a sign that the market is becoming increasingly split between ‘dating’ overseas firms that advise only on the international aspects of deals, and ‘married’ firms that have taken the plunge with affiliates to practise Brazilian law. The question is, which is the right strategy for international firms to pursue?To read the rest of this article subscribe to Legal Business. 
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