Halliburton and Baker Hughes officially called off their $28 billion megadeal on Sunday, and three banks stand to lose nearly $100 million as a result.
The oil field services giants terminated their merger agreement after facing opposition from antitrust regulators in the US and Europe.
It’s bad news for Goldman Sachs, Credit Suisse, and Bank of America Merrill Lynch, which were advising on the deal and stood to earn up to $110 million in fees, according to the consultant Freeman & Co.
Now, they are likely to lose more than 85% of that.
Halliburton’s advisors, Credit Suisse and BofA, had been expected to earn $41 million and $15 million, respectively. But $37 million of Credit Suisse’s pay was contingent on a deal close, according to Freeman, while about $13.5 million of BofA’s pay was contingent on a close.
Baker Hughes’ adviser was Goldman Sachs. About $44 million of the $54 million it was expected to earn was contingent on a deal close, according to Freeman.
That’s a total of $94.5 million in lost fees for the banks.
Halliburton-Baker Hughes is not the first megadeal from 2015 to fall apart. Last month, the Pfizer-Allergan merger, a deal that would have been worth $160 billion, was also called off because of regulatory hurdles.
Goldman Sachs, Centerview Partners, Guggenheim, Moelis, JPMorgan, and Morgan Stanley lost more than $200 million in combined advisory fees from that deal’s termination.
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