London: British law firm Allen & Overy and US peer Shearman & Sterling on Monday unveiled a merger to create a global titan with combined revenues of $3.4 billion (3.1 billion euros).

"Allen & Overy and Shearman & Sterling today announced a planned merger to... combine two of the world's most prestigious law firms to create an integrated global elite firm," the pair said in a statement.

The new group, called Allen Overy Shearman Sterling or A&O Shearman, was "truly a game-changing moment for both firms".

And it will be "the only global firm with US law, English law, and local law capabilities in equal measure", they added.

The merged firm will have around 3,900 lawyers and about 800 partners across a total of 49 offices worldwide.

"This merger is driven by clients' needs for a seamless global offering of the highest quality and depth to support them in navigating an increasingly complex legal, regulatory, and geopolitical environment," the statement read.

Wim Dejonghe, senior partner at Allen & Overy, said the deal was an "exciting step" for both groups who wanted to offer "the best of both firms, regardless of geography".

Adam Hakki, senior partner at Shearman & Sterling, added that the merger would allow it to "dramatically accelerate our ability to meet (clients') needs in an increasingly complex environment".