City firm Herbert Smith has confirmed it will terminate its alliance with European firms Gleiss Lutz and Stibbe by the end of the year. The alliance with Germany’s Gleiss and Benelux firm Stibbe was expected to be wound down gradually after merger talks broke down earlier this year.

But in a short statement jointly released today, the firms said the 10-year link would formally end from 31 December.

The statement said the firms intend to maintain ‘strong relationships’ built over the last decade. It promised the termination will not affect clients, including BP, Goldman Sachs and Swiss Re, whose matters are jointly handled by the firms.

The alliance had been heralded by the firms involved as an innovative alternative to mergers, granting them independence to operate but allowing them to pool expertise across practice areas.

But when merger talks failed in November, Herbert Smith opted to leave the alliance and pursue expansion plans elsewhere. A New York base is set to open next year, with possible further openings in Africa, Korea and Germany.