Opportunities in the areas of real estate, finance and venture capital could lead to other international law firms launching operations in Lisbon
Following DLA Piper's decision to open in Portugal –
as a result of a merger with local law firm ABBC – lawyers in
Lisbon are refusing to rule out other global firms opening in the
country, with real estate and venture capital seen as particularly
lucrative areas of business.
DLA Piper decided to merge with ABBC having been closely affiliated
with the firm since 2010. Prior to that, DLA Piper had a close
association with another Lisbon-based law firm, Miranda. The firm
will now trade in the Portuguese market as DLA Piper ABBC. Juan
Picón, global co-chairman of DLA Piper, says that having had
an established relationship with ABBC, it was a natural move to
join forces to create a single, joined-up offering across the
Iberian region. "We saw that the upturn in the Portuguese
economy had resulted in more foreign investment, with many of
ABBC's Spanish clients in Spain interested in investing in
Portugal," he explains. "As a result of the close
economic integration of Spain and Portugal, the Iberian legal
market is increasingly being seen by our clients as a single
market."
Picon argues that, given the opportunities arising due to increased
globalisation – particularly in relation to Latin America and
Africa – it is very likely that other international firms
could follow DLA Piper's lead and open in Portugal.
"Businesses need law firms that are 'truly global', so
having a presence in the Iberian region is therefore
important," he says.
João Miranda de Sousa, managing partner of Garrigues in
Lisbon, says the Portuguese market is attracting a variety of
investors who are targeting a range of sectors including real
estate and finance, as well as venture capital linked with
start-ups. He adds that, given this context, it is "difficult
to completely rule out the idea of other global firms opening
offices in Portugal". It is understood global firms are
considering opening in Lisbon as a means of targeting Lusophone
Africa. DLA Piper and Linklaters are currently the only two global
firms in Portugal though Simmons & Simmons previously had a
Lisbon office.
Too few deals?
However, Luis Pais Antunes, managing partner of PLMJ, argues that,
considering global firms such as Linklaters have already been in
the Portuguese market for a number of years, the arrival of DLA
Piper is not particularly significant. "The most international
Spanish law firms have also had a strong presence in Portugal, as
well as other relevant international firms," he says.
Meanwhile, Pedro Guimarães, partner at FCB Sociedade de
Advogados in Lisbon, says the level of profitability of legal work
in Portugal is still a long way from what global firms expect,
meaning that it is unlikely others will take the step of opening in
the country. "There are just not enough significant
transactions happening in Portugal, and other (smaller)
transactional and advisory work tends to be paid at levels that
global firms would not find appealing," he adds.
In terms of the long-term impact of global firms such as DLA Piper
opening in Portugal, Miranda de Sousa thinks they will "enrich
the legal sector" through new ways of working and new business
models. "It also represents a healthy incentive for
competition," he adds. Similarly, Guimarães hopes that
DLA Piper's expansion will open up the market to greater
diversity and multiculturalism. "The country has been a
marginal jurisdiction for too long and perhaps this opening of DLA
Piper will contribute to making it more inclusive," he says.
However, Pais Antunes thinks that while competition is good, the
arrival of new international firms to the Portuguese legal market
will ultimately have little effect. "The top independent
Portuguese law firms are very well equipped, have excellent
lawyers, provide high-level services and are becoming more and more
international," he says.
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