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Five banks will share more than $ 300 million in advisory fees for Bristol-Myers Squibb's $ 74-billion takeover of American rival Celgene on one of Wall Street's biggest paydays in recent years Street.
This deal is the largest ever in the pharmaceutical sector following Pfizer's takeover of Warner-Lambert in 1999 for $ 110 billion. It brings together two of the world's largest cancer drug groups.
Advisory fees amounted to $ 304 million. They were disclosed on February 1 in a file filed with the Securities and Exchange Commission, the US regulatory authority, and exceeding the $ 260 million granted in 2018 by six banks Bn takeover of Shire listed in the UK -United.
Morgan Stanley will reap $ 82 million from BMS, including $ 67 million it will receive once the agreement is reached, in the third quarter of 2019. The US bank will also earn $ 100 million for a bridge loan $ 33.5 billion, one of the most on record, to help finance the acquisition.
The loan was granted by the Morgan Stanley joint venture with the Japanese bank MUFG. The partnership was formed at the height of the 2008 financial crisis when Morgan Stanley sold its 21% stake to its Japanese counterpart, or about $ 9 billion. Last year, the two banks made a $ 27 billion loan to Cigna, the US health insurer, to buy Express Scripts, the pharmaceutical benefits manager, for $ 52 billion.
Evercore earns $ 30 million to advise BMS, of which $ 20 million will be payable at the end of the transaction. Dyal Co, the store created by former Goldman Sachs rainmaker Gordon Dyal, will raise $ 25 million to advise BMS, of which $ 15 million is payable at closing.
JPMorgan will receive the largest commission of all banks: $ 100 million to advise Celgene, of which $ 15 million will be paid later. Citigroup, its co-advisor, will earn $ 67 million, including $ 10 million later.
Bonanza bonus comes after one of the biggest years in mergers and acquisitions. According to Refinitiv data, the value of global transactions exceeded $ 4 billion in 2018, for the third time since records began, in 1980.
The pharmaceutical sector has been one of the most active sectors for mergers and acquisitions, with pharmaceutical companies looking for ways to replace lost revenues from star drug patents and increased competition from generic drugs.
In 2018, there were 1,319 pharmaceutical transactions worldwide, for a total value of $ 312 billion, according to Dealogic, the data provider.
To contact the authors of this story with your reactions or news, send an email to Lina Saigol and Paul Clarke.
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