It will also extend the geographical reach of the firm from its three current bases in Melbourne, Sydney and Perth (the latter of which it opened in November 2008 by merging with two local firms – Salter Power and Franklin Legal).
It is an interesting time for the legal sector in Australia’s resource-rich northern state. Middletons’ announcement comes on the back of the Brisbane arrival of three other mid-tier firms – Macpherson + Kelley, Thomsons and Henry Davis York – in the past 12 months.
But there may yet be firms looking to establish a QLD base. We received the following comments from an anonymous spy last week:
Baker & McKenzie are investigating opening a Brisbane office. Thought you might find it interesting given that Brisbane seems to be becoming a new area for expansion.
What’s even more interesting is that Bakers doesn’t yet boast an office in Perth, being confined to its offices in Melbourne and Sydney. It seems more sensible to us that the firm would first consider an expansion to the booming west ahead of a foray to the north. On the other hand, Bakers’ new Australian head Chris Freeland might perceive that in the rush by firms to capitalise on Australia’s highly resource-rich west, the focus has been diverted from another potential source of growth in an increasingly competitive market.
Who knows, it might be part of the firm’s bid to, gulp … achieve “global fluency“.
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And we all know what a disaster the merger with Franklin (sic) Legal was…those guys all punched out to Corrs within the year….
I have spoken to a few senior partners at bakers about this. They will have a Brisbane office within the next year. The reason they are not opening a Perth office is because they regard the Perth market as being too difficult to break into.
I thought Flower+Hart were radioactive after the White Industries debacle to be touched by a biggie for another 10 years. Well, I guess the offenders have all taken to greener meadows by now
Middletons has a disastrous record of mergers. Once upon a time it was Westgarth Middletons, before the former split with Middletons and married Corrs. The firm later became Middletons Moore & Bevan, in which guise it had an office in Brisbane sometime in the 90s. But that too fell apart. I have a feeling the Brisbane partners mostly joined McCulloughs, but I may be wrong.
Then most recently, there was the Perth tie up with Salter Power and Franklyn Legal. In what must have been a rubbing of salt in an old wound (pun intended), history repeated itself and the Franklyn partners defected to Corrs.
This merger with Flower & Hart is reminiscent of the Herbert Geer/Nicol Robinson Halletts merger: a Melbourne firm looking to become an East Coast firm; and a staple of the Brisbane market looking to reinvent itself. Time will tell whether it goes the way of all other Middletons mergers.
What will be interesting is the rumoured Bakers entry into the Brisbane market – any word of whether by merger or (Middletons), mass defection (Thomsons) or going it alone (HDY & JWS)?
@ Hans Blix
Thanks for that! In response to your question, we haven’t heard much at this stage.
We wouldn’t be surprised this year for there to be merger interest in Cooper Grace Ward, HopgoodGanim, Carter Newell, McInnes Wilson and Thynne & Macartney. These are some of the most lucrative, Brisbane-based firms. We imagine Bakers would be on the phone to at least one of them if reports we’re hearing are true
@ The Spy
In the case of the first two (CGW & Hoppys), one would think they’d need to first dump or spin-off their (strong) family law offerings before any potential suitors come a knocking. There’s a relationship there with Hoppys too, with it being known to have done some Brisbane town agent work for Bakers in the past, not that that necessarily means anything. But it’s probably a more attractive proposition than CGW in terms of its corporate offering.
Carter Newell and McInnes Wilson are both very insurance-oriented, so unlikely candidates, although the former has a growing corporate/resources practice. Thynne & Macartney is a solid mid-tier offering, but as such is probably more suited to a Middletons marriage than bedding Bakers. McCulloughs would be an attractive proposition, but is probably too profitable to be interested in anything other than CC or A&O and has already started making its own way south.
Maybe Hynes is looking for a quick rebound after their break-up?
But my money’s on a partner or team raid by Bakers, should the rumours be true.
Hoppys used to do the town agency work for HDY, and look what happened there.
Maybe Bakers will tie up with the remaining DLA Brisbane partners – they must be champing at the bit to bust out of that hole by now. Problem is, what would Bakers want with insurance lawyers, projects wannabes, and the biggest and most cowardly bully since Noah wore nappies??
@ Hans Blix. Hoppies brand is too strong in Brisbane for a merger that is anything less than a deal too good to refuse – and most are far from that. Hoppies are a long time hold out on such advances. As are mcculloughs. Most decent firms in Brisbane have been approached by the new southern entrants As for bakers speaking to suburban outfit Hynes, you are a funny fellow aren’t you.