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A client of Simpson Thacher & Bartlett must unwind a merger after the elite law firm failed to file an appeal on time against the UK competition regulator’s decision to block the deal.

In a judgment handed down on Tuesday, the Competition Appeal Tribunal said there were no “exceptional” circumstances to justify Simpson Thacher’s mistake, despite the “significant” impact on its client if it was unable to appeal.

The ruling comes after the UK Competition and Markets Authority blocked a deal between Simpson Thacher’s client, US catering company Aramark, and fellow caterer Entier in January over antitrust concerns.

Following an investigation, the CMA had said that Aramark must unwind its purchase of Entier because the deal combined two of the three major players in the UK market for catering, cleaning and maintenance services on offshore facilities such as ships and oil rigs.

Aramark had four weeks to appeal against the decision. However, Simpson Thacher said the appeal was filed a day late because of its “misinterpretation of the rules”.

Simpson Thacher is one of the world’s biggest law firms and is part of a select roster of counsel called on by the biggest private equity houses and corporations globally, charging thousands of pounds an hour for its services.

Its equity partners were paid an average of $7.7mn in 2024, according to its most recent set of financial results, while some of its most junior lawyers earn a base salary of $225,000 a year.

In his judgment, tribunal chair James Wolffe KC wrote: “I take fully into account the substantial prejudice which Aramark sustains by reason of losing the opportunity to obtain a review of the [CMA] decision, and that the underlying reason why this has happened is an error by its solicitor in computing the time limits.”

He added: “I do not consider that these are exceptional circumstances which justify an extension to the statutory time limit.”

While the tribunal can extend the deadline in exceptional circumstances, it does so rarely. The rules on time limits for filing such appeals have been in place for more than 20 years.

The outcome raises the prospect of a professional negligence claim against Simpson Thacher from Aramark over the error. Wolffe said that the “consequences for Aramark of the failure to file timeously are mitigated by the availability of that claim”.

The case has attracted attention because the CMA blocks so few mergers. The Aramark deal was the first in more than a year to be rejected by the regulator.

One rival antitrust lawyer said the decision was “very embarrassing” for Simpson Thacher. 

Aramark said: “We are very disappointed with the decision of the Competition Appeal Tribunal and are reviewing our options, including an appeal.”

The CMA said: “The CAT’s judgment confirms that its deadlines are strict, reflecting the public interest in finality and certainty on the matters to which CMA decisions relate.”

Simpson Thacher and Entier did not immediately respond to requests for comment.