Wall Street banks could make close to $700 million from the Bayer-Monsanto deal

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 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 adivising Bayer and will split $70 million to $80 million. The first two are expected to receive most of the fees, however, as they are listed in the release as a retained “additional” advisor.

The inclusion of Ducera on the deal is interesting as the firm becomes another in a growing line of boutique investment banks that have adivsed 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 as well.

The bridge loan will be financed by BofA Merrill Lynch, Credit Suisse, Goldman Sachs, HSBC and JP Morgan according to the release annoucing the deal. According to Freeman & Co., this could garner those banks $150 million to $200 million in fees. The underwriters for the convertible equity has not been named, but 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 merger.

The deal is pending regulatory approval, and given the size of the deal and the recent run of mega-deals being scuttled by regulators, this isn’t a slam dunk payday for these invesment banks just yet.

If it does go through, however, it could be a big celebration at these banks.

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