The magic circle’s Allen & Overy and New York white-shoe firm Shearman & Sterling have revealed merger plans to create the world’s third-largest law firm by gross revenue.

The combined Allen Overy Shearman Sterling – A&O Shearman for short – will have around 3,900 lawyers and 800 partners across 49 offices in 29 countries, and approximately $3.4bn in combined revenues.