KHARKIV, UKRAINE - MAY, 17: The players of FC Shakhtar champagne celebrating victory in final match of the Cup of Ukraine Shakhtar (Donetsk) - Dynamo (Kyiv) at the Metalist Stadium May 17, 2017
- Investment bankers could make nearly $330 million in deal fees combined following the announcement of three megadeals on Monday.
- The deals include a $26 billion merger between telecom giants T-Mobile and Sprint; oil refiner Marathon's acquisition of Andeavor for $23 billion; and Wal-Mart's sale of its UK grocery business Asda to Sainsbury for $10 billion.
Merger Monday is back.
M&A bankers are set to split nearly $330 million in fees from three megadeals announced on Monday, according to consulting firm Freeman & Co.
These deals include a $26 billion merger between telecom giants T-Mobile and Sprint; oil refiner Marathon's acquisition of Andeavor for $23 billion; and Wal-Mart's sale of its UK grocery business Asda to Sainsbury for $10 billion.
The spoils will be split between no fewer than 13 investment banks, with Goldman Sachs and Morgan Stanley landing roles on two of the three big deals. Here's how the fees break down across the three deals:
In telecoms, PJT, Goldman Sachs, Deutsche Bank and Morgan Stanley will split $50 million to $70 million for representing T-Mobile and Deutsche Telekom on the deal, while Raine Group, Centerview Partners, JPMorgan, Mizuho and SMBC Nikko will split $60 million to $80 million in fees for advising Sprint and SoftBank.
In oil, Barclays is expected to collect $35 million to $45 million for advising Marathon, while Goldman will receive $50 milion to $60 million in fees for its work with Andeavor.
And in retail, Credit Suisse and Rothschild will split $30 million to $40 million in fees for advising Wal-Mart and UBS and Morgan Stanley will earn $20 million to $30 million for advising Sainsbury.
The latest deals are just the latest in a red-hot environment for M&A this year. Global M&A volumes during the first three months of 2018 were their highest ever, thanks to US tax reform and stronger economic growth in Europe.