Stephenson Harwood and Taylor Wessing will not go ahead with their proposed merger, calling time on a deal that could have created a £500m firm with a presence across Europe, the Middle East and Asia.
The firms revealed the decision not to proceed in a joint statement on Wednesday (11 March).
“Stephenson Harwood and Taylor Wessing have held initial discussions regarding a potential merger," the firms said. "Both firms have been impressed by each other’s businesses and market positioning. Following constructive talks, we have mutually agreed not to take the proposed merger forward.
“We have valued the opportunity to get to know each other better and wish each other every success for the future.”
Taylor Wessing, which employs approximately 700 lawyers, operates a European network of 16 offices across 11 jurisdictions, following a June 2026 split when the firm's former UK, Dutch and Belgian businesses left the original verein to form Winston Taylor.
The continental European operations, which have offices in Germany, France and Central and Eastern Europe, continued under the Taylor Wessing name.
Legal Business reported when news of the talks emerged last month that, unlike Taylor Wessing's current verein model, the merged firm would have a fully integrated, single-profit-pool.
Taylor Wessing’s German offices recorded revenue of €243m for 2025, while Stephenson Harwood, which employs 1,500 people across 11 offices, reported revenue dipping 2% to £303m in 2025/26 with profit falling 12% to £105m.
In the previous financial year, profit per equity partner (PEP) hit £1m at Stephenson Harwood. The firm declined to give a PEP figure for this year and attributed falls in revenue and profits after a record 2025 to volatility in disputes work.
The decision to end the merger talks follows internal changes at the firm, which announced last month that chief executive Eifion Morris would step down at the end of the year for personal reasons and be succeeded by James Linforth, though it maintained that the leadership change had not affected the talks.
The £1.2bn merger that created Winston Taylor, meanwhile, went live in June following a partner vote at the beginning of the year, creating a firm with 1,400 lawyers.
Winston Taylor also agreed a cooperation and referral arrangement with the legacy Taylor Wessing verein to provide continuous service to clients.
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