Allen & Overy Still Open to Merger, but Transatlantic Deals Rare

London-based Allen & Overy still would like a U.S. partner, but its failed talks with O’Melveny & Myers illustrates the difficulty of nailing down transatlantic law firm mergers.

Culture clashes, compensation, and governance issues appear to be stumbling blocks for U.S.—U.K. legal combinations as few have been consummated. A rockier global economy could make any near-term prospects even more challenging.

Powerhouse A&O and O’Melveny formally called it quits last weekend after more than a year of talks despite both “agreeing that there were some compelling synergies.”

Although neither outlined why the talks foundered, the split likely centered on different cultures ...