Partner Memo

👋 Hey ZipLawyer - we’re transforming our newsletters into Partner Memos to help you think like Partners!

What's the idea?
Commercial awareness is all about understanding how events impact law firms and their clients. Partners constantly evaluate opportunities and risks in the news to drive their practices and firms forward.

Our memos are written as if you are a Partner —cutting straight to the strategic considerations, weighing risks, and spotting opportunities to grow your practice. By learning to think like a Partner, you'll gain the insights and mindset needed to excel in your applications and interviews.

What to expect in each Memo:

• 💡 Must-Know: A briefing of the top news of the day/week.
• 📈 Opportunities: Industry news that signals growth and what it means for law firms.
• 📉 Challenges: Sectors facing hurdles and how they create work (or risks) for law firms.
• 🏢 Competitors: Updates on other law firms’ big moves—think deals, cases, and hires.

We would love to hear your feedback. Let us know what you think by voting at the bottom of this email or by replying to this email 😄

Dear Partners

Today’s memo: Trump boosts crypto, US and China impose trade restrictions, companies leave the UK, Freshfields and Willkie lead on Mastercard settlement.

💡 Must-Know

• 🇺🇸 Crypto Champion: Donald Trump nominated Paul Atkins to lead the SEC, a known crypto advocate critical of Gary Gensler’s crackdown on exchanges. Bitcoin hit a record $100,000. Gail Slater was tapped for the Justice Department’s antitrust division to continue targeting big tech.
• 📉 GM's $5bn Hit: General Motors revealed a $5bn charge tied to restructuring and the declining value of its Chinese ventures. The carmaker's market share in China has significantly dropped in recent years, highlighting industry struggles.
• 👷 VW Walkout: Nearly 100,000 Volkswagen employees in Germany staged industrial action over restructuring plans, including potential factory closures. The union warned of more disruption if negotiations fail.
• 💻 Intel Exit: Intel CEO Pat Gelsinger resigned, with two interim leaders stepping in. The chipmaker reported a $16.6bn quarterly loss due to write-downs and restructuring. Recently, Intel was dropped from the Dow Jones.
• ⚖️ Musk’s Setback: A Delaware judge rejected Tesla's attempt to reinstate Elon Musk’s controversial $56bn 2018 pay package. Musk criticised the decision as “absolute corruption,” though 72% of shareholders had previously approved the plan.

📈 Opportunities

China vs US: Trade War brewingIn In

In short

China banned exports of critical minerals to the US, escalating the tech and trade war in response to Washington’s latest chip-related sanctions.

What’s going on?

The US and China are in a growing trade fight over technology. This week, the US announced stricter rules to limit China’s access to advanced chips and tools used for making semiconductors. In response, China quickly banned exports of important minerals like gallium and germanium, which are essential for making chips and military equipment.

China produces most of the world’s supply of these materials, so the ban is a powerful way to push back. Beijing says the US is unfairly using trade rules to block China’s progress in technology and military development. This ban also shows China is no longer holding back and is willing to hit Western economies in return for sanctions.

The US has been tightening restrictions for years, including blacklisting Chinese companies and blocking deals like China’s attempt to buy a major UK chipmaker (Newport Wafer Fab). Now, both sides are locked in a cycle of back-and-forth measures. This fight could disrupt global supply chains and make it harder for companies to get the materials they need to build technology.

What does this mean for Law Firms?

• Increased demand in International Trade, Corporate, and Competition teams as clients adapt to supply chain disruptions, strategic transactions, and market challenges.

International Trade and Customs Law: These developments present a significant opportunity for us to support clients navigating the increasingly complex trade landscape. Many businesses reliant on minerals like gallium and germanium will need our expertise to restructure supply chains, renegotiate supplier agreements, and ensure compliance with global trade rules. For example, we could assist a European technology client draft contracts with non-Chinese suppliers, incorporating protections like force majeure clauses to safeguard against geopolitical disruptions. Additionally, we can assist clients in securing export licences, engaging with regulators, and providing tailored compliance training to mitigate risks.

Corporate and Commercial Law: We anticipate increased demand for our services as clients pursue mergers, acquisitions, and joint ventures to stabilise their operations and gain access to critical technologies. Our corporate team is well-positioned to guide businesses through due diligence, regulatory filings, and integration planning. For instance, we could assist a Japanese semiconductor manufacturer in acquiring smaller competitors to expand its capabilities while navigating tightened export controls. Beyond transactions, we can support clients in structuring long-term partnerships that align with shifting regulatory landscapes, ensuring their resilience in an uncertain market.

Competition and Antitrust Law: This evolving situation also allows us to help clients tackle competition-related challenges. We can represent businesses in disputes over anti-competitive practices or support them in defending against regulatory investigations. For example, we might advise a European chipmaker in challenging a rival’s exclusivity agreements that restrict market access, presenting a robust case to competition authorities. At the same time, we can help clients ensure their compliance with updated antitrust laws across multiple jurisdictions.

📉 Challenges

Goodbye, London Stock Market

In short

The London stock market is shrinking fast, as private equity firms snap up undervalued companies and send them packing.

What’s going on?

London’s stock market is struggling. British shares are trading at a 40% discount compared to global markets, making them a bargain for private equity firms like EQT and Thoma Bravo, which have snapped up companies in deals worth $160 billion this year. At the same time, only 11 companies went public, raising just $1 billion—a stark contrast to the boom years.

Mid-sized firms on the AIM market have been hit hardest, while big names like Just Eat and Flutter Entertainment are moving their listings overseas for better valuations. Critics warn that if London doesn’t fix these issues, it could lose its status as a global financial hub.

The problem? Companies feel undervalued in London, creating a “buyers’ market” where takeovers dominate. On the bright side, some hope these deals will inject fresh cash into the market and spark new listings, but for now, London’s reputation as a financial powerhouse is under threat.

What does this mean for Law Firms?

• Short-term boost in M&A, capital markets, and competition law work, but long-term risks from shrinking public markets.

Mergers and Acquisitions (M&A) Law: The surge in takeovers presents both opportunities and challenges for us and our clients. Many mid-cap companies are vulnerable to undervaluation, making them prime targets for private equity. We’re seeing increased demand from clients seeking our advice on how to defend against hostile takeovers or negotiate more favourable terms. However, with the number of listed companies shrinking, there’s a risk that long-term opportunities in public M&A transactions could decline, potentially impacting this area of our practice.

Capital Markets Law: London’s declining IPO activity and the rise in delistings are reshaping the market. Clients are struggling to access affordable capital on the public markets, and many are turning to us for assistance with delistings, cross-border compliance, or transitioning to private equity funding. While this has boosted our workload in the short term, the shrinking number of public companies poses a long-term challenge. A reduced pipeline of IPOs or secondary offerings could result in fewer opportunities for our capital markets team.

Antitrust and Competition Law: The UK Competition and Markets Authority’s push to streamline deal approvals creates a complex landscape for our clients. While simpler processes encourage more transactions, clients still need our guidance to ensure their deals comply with regulatory frameworks, particularly in sectors like tech and insurance. We’re stepping in to advise on merger clearances and strategies to address anti-competitive risks. However, if regulatory reforms succeed in reducing complexity, this could lead to a modest drop in demand for our competition law expertise over time.

🏆 Competitors

As always - we are keeping a close eye on our competitor's market activity. Here's a summary of key developments from the past week:

• Freshfields and Willkie demonstrated their prowess in high-stakes litigation by advising on Mastercard’s settlement of a multibillion-pound collective proceedings claim over excessive swipe fees. Originally valued at £14 billion, this high-profile case is among the first major tests of the UK’s collective proceedings regime. This win positions both firms as go-to advisors in complex consumer class actions, showcasing their ability to handle long-running and contentious disputes.
• Latham & Watkins has re-secured Oliver Seiler and David Rath, two top capital markets partners, for its Frankfurt office just months after their departure to White & Case. Their return signals fierce competition in Germany’s thriving lateral partner market, with Latham clearly making aggressive moves to retain and attract top talent. This development highlights the increasing importance of maintaining relationships with key partners in this lucrative jurisdiction.
• Clifford Chance has recruited Philipp Girardet, previously the European competition chief at Willkie Farr, to its London antitrust team. Girardet’s expertise in digital regulation and competition litigation strengthens Clifford Chance’s strategy of assembling a market-leading antitrust practice. This follows their earlier hire of CMA’s Michael Grenfell, underlining their commitment to dominating the regulatory advisory space.

💡 Please note we will be sending out a more detailed competitors report this week.

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