Jersey-based Mourant du Feu & Jeune and Cayman Islands-based Walkers have called off merger talks that would have created the world’s largest offshore law firm. Mourant chief executive Nicola Davies said the firms had decided not to combine at this stage despite early discussions proving positive. “I think both organisations saw the potential benefits that would arise from a combined practice," she said. "However, such an integration at this stage is a huge and complex endeavour and we do not believe that the timing is right.” Preliminary talks – which would have created a 300-lawyer offshore firm – began early last year and both firms opened offices in each other’s respective home jurisdictions. Walkers also considered selling off its highly-profitable services arm, Walkers SPV, to Mourant in a deal that would have brought Walkers’ equity partners a sizeable pay out, but would have significantly devalued the rest of the firm. The decision to call off talks comes after last month’s tie-up between rival offshore firms Carey Olsen and Maples & Calder. The move saw Maples cease to practise Jersey law and transfer all its existing clients in the local market to Carey Olsen. Meanwhile Walkers has promoted four lawyers in its Jersey office to partnerships in response to increased funds, corporate and structured finance work in Jersey. The new Jersey partners are James Gaudin, Michael Johns, Jonathan Heaney and Paul Nicholls. Mr Gaudin and Mr Johns lead the capital markets, structured finance, banking and asset finance practice areas. Mr Heaney leads the investment funds practice area, and Mr Nicholls is a commercial litigator whose work has focused on contentious trust litigation, asset recovery, compliance and regulatory disputes. "The promotion of these lawyers is testament to the growth in business and market share we have experienced in the Jersey office, and demonstrates the Walkers' commitment to Jersey," said Heather Bestwick, Walkers' Resident Cayman Partner in Jersey. The projected launch of new unregulated funds regulations later this month is also likely to boost interest in Jersey as a jurisdiction for European managers for all types of investment funds including hedge funds, fund of funds, and private equity funds. The Walkers Group has offices in the Cayman Islands, the British Virgin Islands, Dubai, Hong Kong, Jersey, London and Tokyo.