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Here are the big winners on Wall Street from Bayer's $62 billion bid for Monsanto

May 23, 2016, 19:57 IST

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 $500 million from the deal.

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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 are expected to split $100-$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.

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Credit Suisse, Bank of America, and Rothschild are advising Bayer, and are expected to split $70-80 million in advisory fees. The majority of that will likely go to the two bulge-bracket banks.

Financing fees are expected to make up 0.3-0.5% 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.

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