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Monday was a huge day for mergers and acquisitions.
Following AT&T’s whopping $85 billion deal for Time Warner announced over the weekend, a number of mid-sized deals were announced Monday morning.
It’s good news for Wall Street banks, which could bring in up to $200 million in fees from advising on the mergers.
Here’s a breakdown of the fees, according to estimates from the consulting firm Freeman & Co.:
The Chinese conglomerate HNA Group’s $6.5 billion stake in Hilton:
- $40-50 million to JPMorgan for advising HNA $10-20 million to Evercore for advising Hilton
The aircraft component maker Rockwell Collins’ $6.4 billion deal for B/E Aerospace:
- $30-35 million to JPMorgan for advising Rockwell Collins $35-50 million to Goldman Sachs and Citigroup for advising B/E Aerospace
- $15-20 million to Barclays for advising TD Ameritrade $20-25 million to Goldman Sachs for advising Scottrade
American Midstream Partners’ deal for JP Energy, which will create a $2 billion pipeline company:
- ~$5 million to Bank of America Merrill Lynch for advising American Midstream ~$5 million to BMO Capital Markets for advising JP Energy
This tops off an already big month for mergers and acquisitions.
To date, October has seen $279 billion in announced M&A involving US companies, according to Bloomberg – the highest since July 2015, when we saw $337 billion in announced deals.
That excludes deals that have since been scrapped, like $160 billion Pfizer-Allergan merger, which was announced in November 2015 and later blocked by regulators.
According to S&P Global Market Intelligence, October 2016 currently stands at the third-strongest month ever for US M&A announced deal value.