Pharmaceutical giant Teva agreed to buy Allergan’s generic drug arm for about $US40.5 billion on Monday.
That should cement the Israel-based company’s position as the top generic drugmaker in the world.
It will also be great for Wall Street banks, which will reap millions in advisory and other fees.
Irish-based Actavis last year bought Allergan for $US66 billion, and kept the name.
Together, those two firms have generated some $US780 million in investment banking fees for mergers and acquisition advice and equity, debt and loan deals since 2012, according to consultant Freeman & Co.
Now, the Teva deal should boost total Allergan-Actavis fees to about $US820 million, according to Freeman, with Allergan adviser JPMorgan in line to receive between $US35 million and $US45 million in fees.
Barclays and Greenhill, which are advising Teva, should earn somewhere between $US30 million to $US40 million for the deal, Freeman estimated. That doesn’t include all the potential fees to come depending on the size and structure of the equity and debt package.
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