- REUTERS/Tomas Bravo
The German pharmaceutical giant Bayer has made a $62 billion bid for the US seed company Monsanto – and five banks stand to make nearly $400 million from the deal.
Morgan Stanley, Ducera Partners, Credit Suisse, Bank of America Merrill Lynch, and Rothschild are advising on the deal, which would be the largest takeover by a German company on record.
It would also create the world’s largest farm supplier.
Morgan Stanley and the boutique bank Ducera are advising Monsanto, and they are expected to split $100 million to $110 million in advisory fees, according to the consultant Freeman & Co.
Ducera partners Michael Kramer, Derron Slonecker, Joshua Scherer, and Adam Verost were the lead advisers for that bank.
Credit Suisse, Bank of America, and Rothschild are advising Bayer, and they are expected to split $70 million to $80 million in advisory fees. The majority of that will most likely go to the two bulge-bracket banks.
Financing fees are expected to make up 0.3% to 0.5% of the debt capital raised, according to Freeman. Assuming that 75% of the $62 billion bid is financed with debt, the fees could be up to $200 million.