Talks over a possible merger between national firms DWF and Cobbetts have ended just weeks after they were first confirmed.

In a joint statement released today, the firms said the decision had been made not to progress with talks due to ‘current uncertainty in market conditions’.

The statement added: ‘Growth by merger and lateral hires continues to be an option for both firms but until any discussions are brought to a conclusion, we will not be in a position to talk about them publicly.’

It had been hoped the merger could take place as early as May 2012 to create a firm with a combined turnover of more than £120m.

Merger speculation heightened last year when it was reported that the domain name dwfcobbetts.com had been registered.

Although this deal failed to materialize, analysts predict a number of mergers may happen in 2012 across a number of sectors. Among some of the names that have taken the plunge recently are City firm Sprecher Grier Halberstam, which has merged with national firm Martineau to create SGH Martineau; insurance specialists Beachcroft and Davies Arnold Cooper (DAC); and Barlow Lyde & Gilbert (BLG) with Clyde & Co.