Law firms Beachcroft and Davies Arnold Cooper have confirmed that they are in talks over a potential £175m merger.
Management said the attraction of the merger was that it would create one of the largest law firms serving the insurance market, “with considerable strength nationally and internationally”.
The two firms highlighted the strength of their real estate, litigation, corporate and employment teams, as well as the fact that they are key players in the health and life sciences market.
Beachcroft has also been making headway in local government, having been selected as one of four partner firms to the North West Legal Consortium in March 2010.
Paul Murray, Managing Partner of Beachcroft, said: "Our merger discussions with Davies Arnold Cooper are driven by the opportunity to enhance how we work with clients in industry sectors in which both firms specialise, and in particular the insurance sector.
“The combination of Beachcroft's leading volume and UK insurance practice with Davies Arnold Cooper's strong insurance and dispute resolution team in London, Spain and Latin America would create a distinctive, full service offering for our insurer clients."
Danny Gowan, Senior Partner of Davies Arnold Cooper, added: "In addition to creating a stronger offering to the insurance sector and increased investment internationally, a merger would provide significant advantages to our real estate, corporate and employment teams, which have grown significantly over recent years."
News of the talks comes just weeks after it was revealed that Barlow Lyde & Gilbert and Clyde & Co were holding merger discussions.