- REUTERS/Nacho Doce
It’s finally official.
After months of courting and increasing offers, chemical and agriculture giant Monsanto is being bought by Bayer for a staggering $66 billion, or $128 per share.
The agreement on the deal also means a massive payday for some Wall Street banks just got a little closer.
Morgan Stanley, Ducera Partners, Credit Suisse, Bank of America Merrill Lynch, and Rothschild are all advising on the deal and stand to make as much as $190 million combined if the deal is completed.
Here’s a breakdown of who will make what, according to the consultant firm Freeman & Co.:
- Seller side: Morgan Stanley and Ducera are advising Monsanto and are expected to split $100 million to $110 million. Buyer side: Credit Suisse, Bank of America, and Rothschild are advising Bayer and will split $70 million to $80 million. The first two are expected to receive most of the fees, however, as Rothschild is listed in the release as a retained “additional” adviser.
The inclusion of Ducera on the deal is interesting, as the firm becomes another in a growing line of boutique investment banks that have advised on large mergers in 2016.
Additionally, the deal will include a $57 billion bridge loan to help finance the all-cash deal and a $19 billion convertible equity package.
The bridge loan will be financed by BAML, Credit Suisse, Goldman Sachs, HSBC, and JPMorgan, according to the release announcing the deal. According to Freeman & Co., this could garner those banks $150 million to $200 million in fees.
The underwriters for the convertible equity have not been named, but they could also bring in $250 million to $300 million for the banks that complete that deal.
All told, Wall Street could rake in as much as $690 million from this acquisition.
The deal is pending regulatory approval, and given the size of the deal and the recent run of regulators scuttling megadeals, this isn’t a slam-dunk payday for these investment banks just yet.
If it does go through, however, it could be a big celebration at these banks.