Mergers and acquisitions, or M&A, deals have been falling apart lately – and it’s starting to seriously hurt Wall Street.
Wall Street banks have lost $1.2 billion in revenue this year because of withdrawn global M&A, according to Dealogic.
That’s up 33% from the same period last year – and at its highest level since 2007.
Lost revenue from megadeals, or deals worth at least $10 billion, makes up 65% of the total withdrawn M&A revenue this year. In 2007, megadeals made up 58% of withdrawn M&A, according to Dealogic.
Of the $1.2 billion in lost revenue, $736 million came from abandoned deals in the US, and $280 million came specifically from withdrawn healthcare deals.
The total value of withdrawn M&A deals this year is $481 billion, according to Dealogic.
The largest transaction to fall apart in 2016 is the Pfizer-Allergan merger, which would have been worth $160 billion. It was scrapped last monthafter the US Treasury announced new rules clamping down on so-called tax inversions.
That cost advisers more than $200 million in revenues, according to the consultant Freeman & Co.
Then there was Honeywell’s $103 billion bid for United Technologies, which it abandoned in March, and Canadian Pacific Railway’s $40.7 billion bid for Norfolk Southern, which collapsed in April.
Halliburton and Baker Hughes on Sunday called off their $28 billion megadealafter facing opposition from antitrust regulators in the US and Europe.That lost Wall Street banks more than $100 million in advisory and financing fees, according to Freeman.