Monthly Round-Up JUNE 2023 American Airlines and JetBlue Partnership Struck Down in Federal Court Allen & Overy Announces $3.4 Billion Merger With Shearman & Sterling A federal judge has ordered American Airlines and JetBlue Airways to break up their alliance after finding that the arrangement means higher prices for consumers. In one of the biggest transatlantic legal deals in history, UK 'magic circle' law firm Allen & Overy has announced a merger with New York's Shearman & Sterling. the companies’ Boston and New York businesses. “It makes the two airlines partners, each having a substantial interest in the success of their joint and individual efforts, instead of vigorous, arms-length rivals regularly challenging each other in the name Allen Overy Shearman Sterling, or A&O Shearman for short. The firms’ combination is expected to accelerate mutual growth strategies. Shearman & Sterling will gain access to a global network of practices, while Allen & Overy will gain expanded access to a corporate client base in the US. “This combination of two great firms is such an exciting step for us,” said Wim Dejonghe, senior partner at Allen & Overy. “Both firms have a history of excellence, and together we think A&O Shearman will be marketplace of competition,” Sorokin said in his ruling. The airlines were ordered to end their partnership within 30 days, which is likely to imperil their operations during the looming summer travel season. A JetBlue spokesperson said that the airline was in the process of studying the ruling and evaluating its course of action. “We are disappointed in the decision,” the spokesperson said. “Through the NEA, JetBlue has been able to significantly grow in constrained northeast airports, bringing the airline’s low fares and great service to more routes than would have been possible otherwise.” a firm unlike any other in the world. We have listened to our clients and their requests for the highest quality advice to help navigate the demands they face, and to do so in an integrated and globally consistent way.” Adam Hakki, senior partner at Shearman & Sterling, also hailed the merger. “This is truly a game-changing moment for both firms that will create an unparalleled offering for our clients. It is also a fantastic opportunity for our people to be part of a transformative transaction and an institution of such significance, and we look forward to recruiting even more stellar talent in the coming years,” he said. US District Judge Leo Sorokin found in favour of the Justice Department (DoJ), who brought the lawsuit against American and JetBlue in September 2021. At issue was the airlines’ partnership in the Northeast, which the DoJ alleged was effectively a merger of The merger, which will be subject to a vote by partners at both firms, will create the third-largest law firm in the world with combined revenues of approximately $3.4 billion. The new firm will retain 3,9000 lawyers across 49 offices and boast equal capabilities in US, English and local law, operating under the 8 LAWYER MONTHLY JUNE 2023
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