Channel Islands law firms Mourant du Feu & Jeune and Ozannes have announced merger plans.

The merger, which will take effect on May 1, 2010, will mean Mourant Ozannes will become one of the world's largest offshore law firms with 50 partners and 200 fee-earners with offices in Guernsey, Jersey, London and the Cayman Islands.

The firms said the combined operation would advise more investment funds than any other Channel Islands law firm, according to Lipper's funds encyclopaedias.

The new partnership will be run by a management committee comprising representatives of both firms. Jonathan Rigby of Mourant will be group managing partner.

Ozannes' Peter Ferbrache will become senior partner and Ian James of Mourant will become chairman. Robert Shepherd of Ozannes will continue as managing partner of the Guernsey office.

The deal, which is subject to regulatory approval, will be structured as a full economic merger of the existing businesses.

The move follows the recent sale of Mourant's fund administration business, Mourant International Finance Administration, to State Street. The Channel Islands' legal scene also underwent a shake-up in January when Appleby announced it had hired four Ozannes associates as partners to launch a Guernsey operation.