Car hire firm, Helphire has entered into an agreement to purchase CS2 Lawyers for over £10m. The deal includes CS2's a number of associated businesses including a medico legal company, a vehicle fleet manager and claims management company E-Claim.

CS2 handled over 10,000 claims last year and has 200 staff but only 2 partners. The deal would bring CS2 within the Helphire organisation once the Legal Services Bill enactment allows such structures.

The move is further evidence that large corporations are circling the legal market and positioning themselves to be in a position to offer legal services to the public once the law allows. Both the AA and RAC have been rumoured to be seeking associations with law firms with a view to providing their own legal services. As yet however, the real danger to the traditional law firm, 'Tesco Law' has yet to become a reality. There is no indiction that Tesco are seeking to purchase a law firm but they are widely expected to do so at some time next year.