Stephenson Harwood is reportedly at an early stage of merger talks with European firm Taylor Wessing.
An internal email seen by Law.com provided details of Taylor Wessing's ”leakage protocol" regarding an "SH" merger. Media reports indicate the firms plan to hold a partnership vote by the end of 2026, with a full merger targeted for 1 May 2027, as negotiations progress quickly.
Taylor Wessing, which employs approximately 700 lawyers, operates a European network of 16 offices across 11 jurisdictions, following a June 2026 split when former UK, Dutch, Irish, and Belgian members 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 that, unlike the current verein model, the proposed tie-up will create a fully integrated, single-profit-pool firm. A loose verein structure was reportedly "not likely at all", according to the title.
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 from last year’s £120m.
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.
Winston Taylor, meanwhile, concluded its £1.2 billion merger between the UK, Middle East, and Benelux elements of the firm in June, creating a firm with 1,400 lawyers and £1.2bn in revenue following a partner vote in January.
Winston Taylor also agreed a cooperation and referral arrangement with the legacy Taylor Wessing verein, including the German business, to provide continuous service to clients, although that relationship is not expected to last beyond a UK merger.
A spokesperson from Stephenson Harwood said the firm “has a clear growth strategy, and we regularly explore opportunities that support our long-term ambitions. We do not comment on market speculation or confidential business discussions”.
In a statement, Taylor Wessing said: “As a matter of principle, we do not comment on market speculation. Our clear focus is on further strengthening Taylor Wessing’s position in the leading European legal markets.”
The news comes amid a busy period of lateral hiring for Stephenson Harwood. This week it lost two London fund partners, Sarah de Ste Croix and Gabriel Boghossian, to A&O Shearman, while adding two partners in shipping and private wealth advice.
Yesterday, it also announced the hires of Freeths partner David Marsden to lead its property litigation practice and Mayer Brown partner Amita Haylock as its head of technology and IP in Asia.
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