Walgreens Boots Alliance just announced a $US17.2 billion deal to buy Rite Aid, and there is one clear winner on Wall Street.
Swiss bank UBS is the sole advisor to the buyer, Walgreen, and is the sole provider of bridge financing for the deal.
That should generate a monster payday, totaling up to $US65 million according to Jeffery Nassof, with M&A consulting firm Freeman & Co.
He told Business Insider that advisory fees should come in at around $US25 million. The bridge financing for the deal could net the bank another $US25 million to $US40 million, he said.
Rite Aid shares soared more than 40% on Tuesday after The Wall Street Journal reported that a deal was close. The companies will host a conference call on Wednesday morning to discuss the transaction.
The deal marks a big win for UBS, which ranked 11 for US M&A prior to the deal’s announcement, with about 11% of market share.
The deal is also a win for Citigroup, which is advising Rite Aid on the transaction. It has become a relative rarity to have just one adviser on either side on such big deals.
The bank was not immediately available for comment.