Deal watch: Baker McKenzie and Slaughter and May drink in £3.1bn Horlicks acquisition as AJ Bell IPO yields dividends for Pinsents and Addleshaws

Deal watch: Baker McKenzie and Slaughter and May drink in £3.1bn Horlicks acquisition as AJ Bell IPO yields dividends for Pinsents and Addleshaws

As the market hunkers down for the festive season, GlaxoSmithKline’s (GSK) £3.1bn sale to Unilever of Horlicks has warmed the cockles of City teams from Baker McKenzie and Slaughter and May, while Pinsent Masons and Addleshaw Goddard have won key mandates on what is likely the year’s last big London listing.

The GSK deal sees it sell its malted drink brand Horlicks and other consumer healthcare nutrition brands to Unilever and includes the merger of listed GSK Consumer Healthcare India with Hindustan Unilever. GSK will also sell its 82% stake in GlaxoSmithKline Bangladesh in the deal, which is slated to complete by the end of next year.

Bakers stepped up for long-standing client Unilever on the deal, with a London team led by corporate partner David Scott alongside partners Steve Holmes, Sue McLean and Michelle Blunt, who advised on the IP and tech aspects of the deal, as well as tax partner Alistair Craig.

Indian firm Cyril Amarchand Mangaldas advised Unilever on Indian law, while Slaughter and May, with a team including partners David Johnson, Simon Nicholls and Christian Boney, acted for GSK.

Last year, Bakers advised Unilever on its acquisition of the personal care and homecare brands of Quala, the Latin American consumer goods company, as well as it joint venture with Europe & Asia Commercial Company in Myanmar.

Scott told Legal Business: ‘It was a pleasure to partner again with our great client, Unilever, and our friends at Cyril Amarchand Mangaldas, on this terrific acquisition, including an iconic brand such as Horlicks.’

Meanwhile, Slaughters earlier this year advised repeat client GSK on its $13bn acquisition of Novartis’ 36.5% stake in their consumer healthcare joint venture.

In other news, Pinsents secured a notable win to advise Manchester-headquartered AJ Bell, one of the largest UK investment platform providers, on a proposed listing on the London Stock Exchange which could raise up to £675m.

The price range for the offer has been set at £1.54 to £1.66 per ordinary share, implying a market capitalisation on admission of between £626m and £675m.

Pinsents corporate partner Julian Stanier led the team advising the company, which is also offering customers the opportunity to apply for shares via the AJ Bell website.

Stanier told Legal Business the IPO is slated to be the last big London listing of 2018 after what has been a choppy year for the capital markets.

‘It’s the same with all companies looking to list. If there is a growth story and strong management team, investors will back it, and we are confident that will be the case with AJ Bell.’

Stanier points to the customer offer alongside the institutional offer as being a point of interest.

He added: ‘The quasi-retail element is not the most common, although it has appeared before, such as in Ocado’s 2010 IPO. What’s interesting is that the whole customer offer can be done completely through AJ Bell’s website.’

Shares are due to be admitted on 12 December.

Addleshaws, meanwhile is advising Numis as sponsor, financial adviser, sole bookrunner and broker to AJ Bell on the float, led by partners Giles Distin in London and Richard Lee in Manchester.

The firm pointed to other notable listings it has worked on in the last two years, including the IPOs of Mind Gym, Sumo Digital, The City Pub Company and Ramsdens.

Distin commented: ‘Whilst UK IPO activity has generally been more muted this year, partly due to volatile market conditions and fears around Brexit, several sizeable and successful businesses have managed to complete a flotation. Like Numis, which has remained very active in the IPO market this year, we’re pleased to have been busy throughout 2018 advising on IPOs and other equity capital markets work.’

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How the legal industry is tackling its diversity issue head-on

How the legal industry is tackling its diversity issue head-on

Once upon a time, the majority of people you’d find working in legal practice would be upper/middle-class, Oxbridge-educated white males. Women: hardly seen. Working-class individuals: forget it. Ethnic minorities: a scarce group. But things have been changing for the better, and in 2018 the legal industry is thankfully at its most diverse.

Many law firms have been making a conscious effort to diversify their workforce and foster an inclusive environment. Why? Well, if you’re a little sceptical about it being out of pure altruism, you’d be right. Whilst many of the decision makers in law firms do have a moral impetus for championing diversity and genuinely want to make the workplace inclusive, there’s also a business case for having a diverse and inclusive workspace. ‘A more diverse workforce makes us a better service provider because we’ll bring people with different backgrounds and viewpoints on life to our teams, and that can make us more effective and valuable to our clients’ explains Matthew Evans, a partner and member of the Diversity and Inclusion Committee at Jones Day. Uzma Hamid-Dizier, head of inclusion and corporate responsibility at Slaughter and May echoed this sentiment saying: ‘For us, our people are central to the service we provide and we need to draw upon diverse perspectives and viewpoints in order to provide the very best service to our clients. As such, diversity and inclusion is not just a “nice to do” but a business imperative.’ CMS is also benefitting from backing a diversity and inclusion (D&I) agenda: ‘We have won work as clients value D&I and we have also had many opportunities to collaborate with them on the D&I agenda, adding value to our client relationships.’ It’s pretty clear that it’s in the interest of law firms to show clients (and job applicants!) that they’re committed to D&I, but how do they tackle such a big issue? In this feature we’ll be exploring how the legal industry is dealing with its diversity challenge with regard to socio-economic background, gender, race and ethnicity, sexual orientation and neurological differences.

Socio-economic background
Traditionally speaking commercial law has been the domain of the wealthy. Those practising in the often high-paying industry have themselves come from affluent families and consequently benefitted from greater access to things like university, work experience and industry connections. To diversify the industry on a socio-economic level and improve social mobility, firms have partnered with various organisations to help bring those from disadvantaged communities into the legal industry. One such organisation is Aspiring Solicitors who work with a host of firms including Baker McKenzie and White & Case to provide events, mentoring, competitions and employability assistance to their diverse members. Jones Day, in collaboration with the Social Mobility Foundation (SMF), helps students from under-represented and low income backgrounds who want professional careers gain access to leading universities and enter careers in global professional businesses. Slaughter and May and CMS work with PRIME, a sector-wide initiative that works to provide access to work experience to students from less privileged backgrounds. ‘A number of students still have preconceptions or concerns about working in a corporate law firm’ explains Hamid-Dizier, ‘[so] our focus recently has been to challenge these preconceptions and invite students in to the firm to give them the opportunity to experience our inclusive culture for themselves. The students who attended have told us that they’re now seriously considering applying to the firm when they previously felt like it wasn’t an option.’

Other ways in which firms have been working to widen access to the industry is through improving their recruitment practices. We all know the deal when it comes to applying for positions in commercial law firms; for insight days, vacation schemes or training contracts, achieving solid grades is a must, attendance at a top university desirable, and work experience a definite bonus. What happens though if you haven’t gone to a “good school” and perhaps as a consequence didn’t get the entry grades for a top university? What if you were unable to complete work experience because you care for a family member? Firms are trying to address such scenarios as they recognise that an individual’s potential is an important factor to consider, not just academic achievements. To offset the limitations of recruiting primarily on the basis of academic achievements firms are incorporating contextual analysis into their recruitment practices. Jones Day, Slaughter and May and White & Case are three firms who have partnered with Rare – an organisation dedicated to sourcing exceptional people from diverse backgrounds for some of the world’s top organisations – to help their graduate recruiters identify candidates with true potential regardless of circumstance. Firms who have signed up to the contextual recruitment system (CRS) use big data to put candidates’ academic achievements in the context of their social and educational background. For example, at first glance an applicant with ABC at A-Level might not seem to be a good fit for an elite firm, but upon learning that these grades have been achieved by a student who lives in a severely deprived area and attends a school where pupils typically achieve CCD, this applicant’s achievements suddenly become rather impressive. In an interview with GC Magazine, Rare founder Raphael Mokades explained further that: ‘The CRS takes into account things like free school meals, whether someone is also working [in addition to studying], social background – the stuff you wouldn’t get from a standard CV. This information is fed into an algorithm that is completely integrated into the recruitment system of our clients.’ Recruiters who use the CRS are better equipped to identify a candidate’s potential and ensure that they don’t miss out on top talent; it ‘helps us paint a more holistic picture of someone’s application and be able to make more informed decisions’ says White and Case graduate resourcing and development advisor Yohanna Wilson. The system has made a significant difference to many firms’ graduate intake; for example, Jones Day has recruited several Rare CRS candidates onto its placement schemes (and from there) as future trainees. ‘Previously, on grades alone, we might not have invited as many of these candidates to interview’ said Evans. This innovative approach to recruitment is clearly making a difference in widening access to the industry and improving diversity levels.

Widening the university pool from which trainees are recruited is another method used by law firms to diversify their workforce. Jones Day for example, has significantly expanded the universities it reaches out to and recruits from. ‘Once upon a time it was frankly Oxbridge and Russell Group – now, although there’s still work to do, our trainees come from a much wider range of universities and include career switchers’, says Evans. The adoption of CV blind recruitment (which White & Case will be implementing this year) is also a strategy used to diversify teams. At CMS unconscious bias training is used to curb discrimination and affinity bias. The recruitment team and hiring partners ‘receive a brief about unconscious bias and tips on how to mitigate their impact’ says CMS graduate recruitment manager, Katherine Sharp. 

Gender
Things seem to be improving on a socio-economic level, but how are things when it comes to gender? Well, diversity levels are improving in this area too. In fact, one could argue that gender diversity is the area that’s seen the most overall improvement in commercial law as male-dominated offices become a thing of the past. Gender diversity is at its best at trainee level; a number of firms report a near-equal split between men and women. However, as we head higher up the corporate ladder the number of women in senior/leadership positions dwindles – and quite significantly too. Whereas at trainee level the number of women can, on average, be between 50 and 60 per cent, at senior/partnership level, it lowers to 30 percent and under, a figure one can argue is a consequence of the multiple barriers women face when pursuing senior-level positions. Encouragingly, a number of firms are working to level the gender balance and promote equality in the industry. CMS, for example, have ‘introduced blind work allocation in some areas of the business to ensure that everyone has the same opportunities to progress and thrive.’ Since women lawyers can sometimes be denied access to top work – thereby limiting their progression opportunities – practices such as work blind allocation help to address the issue and reduce gender discrimination. ‘Bespoke D&I training and inclusive leadership best practice training also help team leaders and managers to make unbiased decisions when it comes to promotion and bonus allocation’ explained Sharp.

Affinity groups are a means through which law firms support the advancement of underrepresented groups in the workplace. Individuals can come together to encourage each other, share common grievances and work towards solutions that better the work environment. The women’s affinity group at Jones Day, for example, is a place for women to discuss what they want to get out of their career, how to progress in the firm and address any work/life balance concerns. For CMS and Slaughter and May, the 30% cross-company mentoring scheme is how they push their gender equality agenda. Women at the firm are matched with a senior business leader mentor from a different organisation to gain impartial, confidential advice. ‘We know that mentoring is a highly personal and effective form of career development and, if it is provided equally, it can further diversify at all levels of an organisation’ says Hamid-Dizier. ‘We’re confident these mentoring schemes will support the development and progression of underrepresented talent at all levels in the firm’ added Sharp.

Race and Ethnicity
When it comes to the ethnic makeup of commercial law firms, the industry isn’t as representative of contemporary society as it could be. Firms are replete with white men and women, but individuals from ethnic minority backgrounds can, at some firms, be few and far between. Where, I hear you ask, are the Black rainmakers? Where are the Asian legal eagles? Where are the mixed-race Alicia Florricks and Middle Eastern Harvey Specters of the industry? Many firms realise they need to address the lack of ethnic minorities in their offices and have taken steps to address the issue by broadening their university outreach, partnering with organisations that champion diversity, and fostering relationships with individuals from ethnic minority groups. For example, the team at White & Case have done some targeted work with university Afro-Caribbean societies to try and improve connections with them, and have also just become platinum sponsors of the Women in the City Afro-Caribbean Network (WCAN) who the firm will host for their legal conference this year.

Achieving racial diversity, especially in senior/leadership positions, is a challenge many firms face. Slaughter and May have ‘set up a BME (Black and Minority Ethnic) cross-company mentoring programme in partnership with EMpower…which provide[s] a space outside of the firm for confidential career discussions and access to high-profile diverse role models in the wider business community’. Within the firm itself, role model partners from ethnic minorities are made visible so as to encourage juniors to develop their career and consider the partnership as a career prospect. ‘Seeing people from similar backgrounds succeed can send a strong signal that your background or difference is not a barrier to progressing your career’ says Hamid-Dizier. Addleshaw Goddard has similarly established an internal BAME Sponsorship Programme led by senior partners across the firm, the aim of which is to identify and raise the profile of reputable diverse role models, sponsors and mentors within the firm and the wider community.

Sexual Orientation
As far as sexual orientation goes, firms have definitely amped up their inclusivity endeavours. Slaughter and May, CMS and Jones Day have dedicated LGBT networks or affinity groups which help bring to light the unique experiences of individuals who fall within this group and provide a space in which to address any concerns. In addition to this, Slaughter and May ‘provide[s] mentoring opportunities to LGBT employees through OUTstanding.’ To support the LGBTQ+ community, Jones Day created a global online guide to same-sex relationship laws. ‘There wasn’t a one-stop shop to find out whether your same-sex relationship is recognised in the jurisdiction you’re moving to, and so we thought, we’re a global firm, why don’t we put a guide together?’ said Evans of how the idea for the pro bono project came about. Over the course of one year, over 200 of the firm’s employees from around the globe conducted research into same-sex relationships in a multitude of countries. The guide is a useful resource that helps to answer questions regarding whether particular jurisdictions throughout the world afford legal recognition to same-sex couples, and if so, provides answers to follow-up questions such as whether marriage or some other status is afforded to same-sex couples, whether foreign same-sex marriages are recognised in the jurisdiction, and the manner in which same-sex couples may dissolve their relationships. This D&I initiative, Evans explained, was ‘a really good way of engaging lots of people across the firm, not just in the LGBTQ+ community.’ The project is constantly under review by the team and undergoes an annual reassessment showing just how committed the firm is to the LGBTQ+ community, and to fostering an inclusive workspace.

Neurological differences
Law firms are also working to be more inclusive of neurodivergent individuals – that is, those with autism, dyslexia, ADHD or bipolarity for example. Many firms are eager to emphasise that having such conditions isn’t a barrier to securing a vacation scheme placement, training contract or any other position at the firm, should the candidate be qualified and brimming with potential. Slaughter and May have ‘rolled out a series of workshops which are aimed at building disability confidence within [their] recruitment process and supports interviewers to feel comfortable with disclosures of disability.’ It’s a legal obligation for employers to make reasonable adjustments for individuals with a neurological difference or disability, and at CMS extra time for psychometric tests and at assessment centres is given to candidates with dyslexia, and a telephone interview rather than a video interview is available for candidates with body dysmorphia: ‘we want candidates to feel able to apply to us’ explained Sharp.

It’s clear that D&I efforts are aplenty at commercial law firms, and though things are not yet perfect, we’re certainly on the way to diverse and inclusive workforces which is something to celebrate.

Mayer Brown Posts Perfect 100% Trainee Retention Score

Mayer Brown Posts Perfect 100% Trainee Retention Score

Mayer Brown has revealed a 100% retention rate for its March 2019 qualifiers.

Four out of four soon-to-be newly-qualified (NQ) solicitors have opted to stay with the US firm, with three taking up positions in the litigation department and one in the banking and finance team.

William Glassey, London training principal at Mayer Brown said:

“Investing in our people is one of our firmwide strategic priorities and there is no better example of this than our commitment to the attraction, development and retention of new legal talent. It gives me great pleasure to congratulate our four newly-qualified trainees, who will each be staying on at the firm. They have a bright future ahead of them and will make a valuable contribution to Mayer Brown’s ongoing success.”

To see Mayer Brown’s full Lex 100 profile and to find out how to apply, click here.

News round-up, 28 November

News round-up, 28 November

Need help developing your commercial awareness? Here’s a round-up of some interesting news stories from around the web.

1. National Gallery taken to employment tribunal in landmark case for public sector gig economy [via The Independent]

2. Zuckerberg no show at international disinformation hearing [via The Week]

3. Goldman Sachs offering staff free emergency nanny care [via The Week]

4. ‘Rip-off’ 118 calls spark price crackdown [via BBC News]

5. Electric bike-sharing company Lime launches in UK [via The Guardian]

6. Uber fined after ‘serious breach’ allows hackers to download 2.7 million customers’ data [via The Independent]

7. European court to rule on whether article 50 can be reversed [via The Guardian]

8. Supreme court rejects request for right-to-die case to be heard [via The Guardian]

9. Viagogo to be forced to tell ticket buyers identity of touts [via The Guardian]

News round-up, 21 November

News round-up, 21 November

Need help developing your commercial awareness? Here’s a round-up of some interesting news stories from around the web.

1. UK firms urge law change on mental health at work [via The Week]

2. Google helps boost High Street spending with search [via BBC News]

3. Scrap juries in rape trials, Labour MP suggests [via The Guardian]

4. Amazon bids for US sports channels in new challenge to broadcasters [via The Telegraph]

5. Addison Lee loses appeal against giving drivers national minimum wage in ‘huge win’ for workers’ rights [via The Independent]

‘An international guy’: Ouwehand wins Clifford Chance race to become first non-London senior partner

‘An international guy’: Ouwehand wins Clifford Chance race to become first non-London senior partner

Clifford Chance has elected Amsterdam head Jeroen Ouwehand as its first ever senior partner based outside the City.

The news comes after Ouwehand, who also leads the firm’s continental European litigation and dispute resolution practice, was hotly tipped internally as being the successor to Malcolm Sweeting.

The first round of partnership voting last week saw two of the five hopefuls drop out – UK-based insurance head Katherine Coates and former capital markets chief David Dunnigan – leaving Ouwehand pitted against London head David Bickerton and ex-Europe chief Yves Wehrli.

Ouwehand has been office managing partner in CC’s Amsterdam office since 2015 and was a member of its partner selection group from 2010-2015. He will take up his four-year term as senior partner on 1 January.

‘For an international firm like Clifford Chance to have never had a senior partner outside of London is surprising,’ one Clifford Chance partner told Legal Business. ‘Ouwehand is an international guy, and that’s seen as a positive.’

The election of Ouwehand also heralds another break with tradition, which has typically seen finance partners take up the role. Stuart Popham led the London banking practice before taking over as senior partner (previous senior partners Keith Clark and Michael Bray were also banking lawyers).

Sweeting commented: ‘Jeroen will make an excellent senior partner for the firm. During his career at Clifford Chance, he has demonstrated a deep commitment to our clients, a sharp understanding of how the world they operate in is changing, and what that means for our firm, our clients and our markets. As we focus on our future, and how we realise our vision globally, this ability to integrate effectively an external perspective with the dynamics of our partnership and wider firm will be crucial.’

Ouwehand said: ‘This is a fantastic firm, with huge opportunities ahead of us. I am greatly looking forward to working alongside my fellow partnership council members, with Matthew [Layton, managing partner], the partnership and all of our talented colleagues across the firm to ensure that we are constantly challenging ourselves to anticipate and respond to changing global and economic realities, to the march of technology and an increasingly complex legal landscape.’

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‘Not just a generic consultancy’: BCLP launches in-house innovation and technology arm

‘Not just a generic consultancy’: BCLP launches in-house innovation and technology arm

Bryan Cave Leighton Paisner (BCLP) has continued its spate of innovation launches, combining parts of its transatlantic innovation teams to create an in-house consultancy, Cantilever.

Cantilever will aim to provide an operational and technology sounding board for clients, while also offering practical technology solutions across areas including contract, matter and litigation management.

‘We’re going to work with clients to tell them what technology solutions are out there and what works best, that’s the consultancy side,’ Bruce Braude, director of legal operations and solutions at BCLP told Legal Business. ‘But also we have our own technology with CrossLite, our data management and analytics tool, which was developed in the US but now as part of the merger [of Bryan Cave and Berwin Leighton Paisner] and the Cantilever launch will be offered to clients on the UK side of the business.’

Cantilever will be led by BCLP chief innovation officer Katie DeBord and the firm’s chief of legal operation solutions, Chris Emerson. Braude, meanwhile, will be part of a wider team that consists of 20 process engineers and data scientists, as well as other legal technologists.

The announcement follows a string of innovation launches from BCLP, the most recent of which was disputes evaluation service Clear/Cut, while in May the firm launched its homegrown legal tech start up Swiftagree.

BCLP aims to make the new consultancy and technology arm a revenue generator for the firm, with in-house legal teams increasingly looking to adopt technology and revise their legal processes.

‘There aren’t many similar things out there,’ Braude added. ‘Cantilever will have a deep understanding of in-house teams and extensive sector knowledge, it’s not just a generic consultancy, and we also have our own technology to bring to bear.’

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News round-up, 14 November

News round-up,  14 November

Need help developing your commercial awareness? Here’s a round-up of some interesting news stories from around the web.

1. Dyson wins five-year legal battle over EU energy labelling laws [via The Independent]

2. Major UK firms to microchip employees [via The Week]

3. Iceland to let loose animatronic orangutan after Christmas ad ban [via The Guardian]

4. Brexiteers call for cabinet to reject draft agreement [via Sky News]

5. CNN takes legal action against President Donald Trump [via The Week]

6. Coca-Cola scales back UK Christmas truck tour after protests [via The Guardian]

7. Struggling Flybe confirms it is up for sale [via Sky News]

8. Singles Day: Alibaba racks up record £24bn of sales in just 24 hours [via The Independent]

9. Police in talks to scrap ‘reasonable grounds’ condition for stop and search [via The Guardian]

10. British high street losing 14 shops a day, new research shows [via The Independent]

Taylor Wessing STEM Event – Apply by 30 November!

Taylor Wessing STEM Event - Apply by 30 November!

Are you currently studying a science, technologyengineering, maths or computer science related degree and looking for a career in Law?

On 4th December the experts at Taylor Wessing will be breaking down what a career at the firm could look like, using your transferable skills and specific knowledge to add value to their firm’s clients and industry sectors. The closing date for applications is 30 November. Register now for this unique opportunity https://bit.ly/2DtZiXX

SRA defers super exam until 2021 as costs of new assessment revealed

SRA defers super exam until 2021 as costs of new assessment revealed

In a busy week for the legal watchdog, the Solicitors Regulation Authority (SRA) has announced it is postponing the implementation of its new centralised assessment, dubbed the ‘super-exam’, until September 2021.

The new Solicitors Qualifying Examination (SQE) was originally slated for a 2020 launch, but the SRA has postponed plans after law firms and education providers indicated a ‘strong preference’ for a delay.

According to the SRA, the deferral will give these institutions more time to develop training and to transition to the new system.

The SRA also announced that the proposed assessment, which is split into two parts, will cost somewhere between £3,000 and £4,500. The SQE 1, which predominantly tests the application of legal knowledge, will cost between £1,100 and £1,650, while the SQE 2, which focuses on more practical skills, will cost between £1,900 and £2,850.

It was also revealed that the SQE provider – education company Kaplan – will be running pilots in 2019 to test the effectiveness of the new assessment. Kaplan has also decided to reduce the number of multiple-choice questions in the SQE 1: shrinking from 680 questions across six exams to just 360 over three.

Former University of Law president and current consultant Nigel Savage told Legal Business: ‘I’m delighted they’re just getting on with it to be honest. It’s a good idea to give the firms more time, in my engagement with them they are only just beginning to understand the impact of the SQE and how it will re-draw legal education.’

On the reported fees, Savage argued they were fair. He said: ‘Kaplan has put in a huge amount of resources and it was a monumental task. Getting the infrastructure necessary to complete these tests across the whole country is not easy.’

The reduction in the number of multiple-choice questions will also please others in the profession. In January 2017, the City of London Law Society (CLLS) voiced concerns over the multiple-choice element, arguing the format would not test legal knowledge comprehensively.

The delay compounds a hectic week for the SRA, announcing on 6 November a major of relaxation rules that will allow solicitors from unregulated businesses to offer unreserved legal services .

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