Huge Merrill Lynch/BofA Conglomerate Shoots To Top Of League Tables

Dealbook assesses the league-table significance of the BofA/Merrill deal and notes that, according to Dealogic, the mammoth, combined firm would take the number one spot in league tables for both equity and debt underwriting this year. It wouldn’t be the number one firm in M&A activity but both firms would enjoy a higher position in that table than they occupied previously.

Dealbook: In equity underwriting, Bank of America and Merrill Lynch would move from the No. 9 spot and No. 4 spot, respectively, to the No. 1 spot, with a total of $58 billion in equity underwriting deals so far in 2008, according to data from Dealogic.

A combined BofA-Merrill would claim 12 per cent of the equity underwriting market year to date, and a $10 billion lead over JPMorgan Chase, the current No. 1 in this category…

It’s a similar story on the debt side. Bank of America and Merrill Lynch would move from the No. 10 spot and No. 5 spot in debt underwriting, respectively, to the No. 1 spot, again leap-frogging JPMorgan Chase. Together, BofA and Merrill worked on about $320 billion in debt-underwriting deals so far this year, or about 9.2 per cent of the total market…

Bank of America currently ranks a weak 13th in the global M&A league tables, advising on announced deals with a total value of $149 billion so far this year. Roughly a third of that figure comes from its acquisition of Merrill: Bank of America acted as its own adviser. Strip that out, and BofA falls to 15th place.

Merrill Lynch was fourth in the M&A rankings, with $439 billion in announced deals year to date.

Taken together — and adjusted to factor out deals for which both banks get credit — the two would still rank fourth, with a combined deal value of $543 billion, as compared with $690 billion for Goldman Sachs, the M&A leader. But they would be within $3 billion of taking the No. 3 position from Citigroup.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.