Blake Dawson has cited complex regulatory issues and taxation hurdles as the reason for limiting the first stage of its Ashurst merger to Asia. The Australasian firm confirmed to the market yesterday that it and UK firm Ashurst had agreed to merge, starting with the Asia operations in March 2012.

Blake Dawson managing partner John Carrington told ALB the variety of different jurisdictions and tax issues associated with integrating offices across more than 20 countries were “complex” and would take some time to work through. “Combining our offices in Asia, in March next year, gives us time to do that in an orderly way,” he said. “What we are setting out to achieve here is a single partnership profit pool.”

However, while full integration of the Australian operations will take some time and is subject to a secondary partner vote in late 2013, the Blake Dawson name will be replaced by Ashurst from March next year in Australia. Blake Dawson chair Mary Padbury said this was a case of moving straight to where the firm wants to finish. “Blake Dawson has a long history in Australia, but we think what we need to succeed in a globalising world is to be part of a firm that has an international brand,” she said. “It’s a great show of faith and trust in us by Ashurst to allow us to use their name in Australia, not withstanding that they will have no interest or control yet and a positive statement by us that we will ultimately merge with them.”

Carrington said the merger will provide Blake Dawson with opportunities for growth regionally and internationally, which might not have been available otherwise. “It’s not something we could achieve through organic growth in any realistic period of time,” he said.  While both firms have offices in Singapore and Tokyo, no job losses are expected as part of their integration, according to Carrington. “We see opportunities for growth and will look to expand our combined presence in those locations,” he added. “I anticipate we will continue to make strategic acquisitions in terms of lateral appointments in the coming months.”