Dentons and Chinese firm Dacheng Law Offices have sealed a deal that will see the two firms combining to form a new 6500 lawyer outfit.

The combination has been approved by partners of both firms though it is still awaiting clearance from the Chinese competition authorities.

The deal represents only the second time ever a Chinese firm has completed a substantial merger with an international firm, the first being the combination between legacy Chinese firm King & Wood, Australian outfit Mallesons and the UK's SJ Berwin, which formed King & Wood Mallesons.

The mega-firm will operate under a Swiss verein structure, which is a popular entry strategy for international firms into domestic markets.

The Swiss verein is a form of voluntary association where members do not share commercial or professional liability for the debts or actions of other member firms and often do not share revenues or pool profits.

The idea of large global brands operating under local rules inspired the adoption of the verein structure, which allows firms to overcome jurisdictional obstacles to international mergers.

Dacheng is currently ranked in the IFLR1000 in the categories of capital markets and private equity. In China Dentons is ranked in similar areas as a foreign firm, capital markets and M&A.