​Pharma deals continue to drive fees

IFR 2072 28 February 2015 to 6 March 2015
7 min read
EMEA
Christopher Spink

Large transactions in the telecoms and healthcare space continue to drive global investment banking fees. Some of the biggest deals last year involved companies in both these sectors, and February has confirmed that this trend remains in place.

Towards the end of the month, Valeant – which lost out to Actavis in last year’s epic US$66bn battle to take over Botox maker Allergan – made an agreed US$14.5bn offer for stomach drug maker Salix.

Salix is being advised by JP Morgan and boutique Centerview, with Valeant employing Deutsche Bank and HSBC. JP Morgan is also advising Pfizer, alongside Guggenheim and Lazard, on its US$16.8bn offer for Hospira, advised by Morgan Stanley. Pfizer failed to buy AstraZeneca last year.

Actavis itself was also a major issuer of equity or equity-related instruments in February. JP Morgan was involved, alongside five other institutions, in the company’s US$4.6bn convertible issue and the US$3.8bn follow-on launched on the same day.

These mandates, alongside a raft of loan activity, ensured the bank retained its second spot in the overall league table of investment banking fees, but were not enough to put it back on top, the position it held for most of last year. Goldman Sachs remains in the lead.

The firm was involved in the two major deals in the materials sector announced at the start of the month – Ball’s agreed US$8.6bn offer for UK rival can-maker Rexam and Irish aggregates producer CRH’s US$7.4bn offer for assets being divested after Lafarge-Holcim’s merger.

Both these deals boasted a long list of advisers. Rothschild and Credit Suisse were also involved in both transactions, as was Goldman.

Notable activity in the bond arena included issues by tech giants Microsoft and Apple, which printed US$10.75bn and US$6.5bn worth of notes respectively at the start of the month. Goldman, JP Morgan and Bank of America Merrill Lynch advised on both deals.

Wells Fargo also worked on the Microsoft deal, ensuring it kept its ninth spot in the table, two places higher than at the same time last year. Another riser is Citigroup, up from seventh to fifth. Credit Suisse remains a faller, down from fifth to eighth.

Overall the amount of fees at US$13.37bn is 26.7% below the level at the same time last year.

Global investment banking fees: February 2015
Global investment banking fees: February 2015
Managing bank or groupNo of issuesTotal US$(m)Share (%)
1Goldman Sachs301863.68.8
2JP Morgan452708.87.2
3Morgan Stanley468657.76.7
4BofA Merrill Lynch421579.65.9
5Citigroup4065505.6
6Deutsche Bank372455.44.6
7Barclays395425.14.3
8Credit Suisse251348.33.6
9Wells Fargo & Co332265.72.7
10UBS144242.22.5
11RBC CM279221.62.3
12Nomura248191.92
13HSBC4041591.6
14BNP Paribas217151.61.5
15Jefferies1151231.3
16Mizuho Financial302104.21.1
17RBS194101.11
18Credit Agricole CIB160100.41
19BMO CM16896.21
20Lazard2294.61
Total​4,927 9,794.6 ​
Americas investment banking: February 2015
Americas investment banking: February 2015
Managing bank or groupNo of issuesTotal US$(m)Share (%)
1Goldman Sachs154589.110.3
2JP Morgan294490.38.6
3Morgan Stanley257487.68.6
4BofA Merrill Lynch293455.28
5Citigroup231372.16.5
6Barclays214297.15.2
7Wells Fargo & Co3142584.5
8Deutsche Bank160237.34.2
9Credit Suisse140209.63.7
10RBC CM216182.13.2
Total​2,3375,698.40
Asia-Pacific & Japan investment banking: February 2015
Asia-Pacific & Japan investment banking: February 2015
Managing bank or groupNo of issuesTotal US$(m)Share (%)
1Nomura135122.27.8
2Goldman Sachs7591.25.8
3UBS3666.24.2
4Mizuho Financial19665.14.1
5Morgan Stanley14063.24
6Sumitomo Mitsui19261.93.9
7Deutsche Bank6845.52.9
8Citigroup7244.12.8
9Credit Suisse41422.7
10BofA Merrill Lynch5939.32.5
Total​1,4641,571.50
EMEA investment banking: February 2015
EMEA investment banking: February 2015
Managing bank or groupNo of issuesTotal US$(m)Share (%)
1Goldman Sachs72183.27.3
2JP Morgan1251807.1
3Deutsche Bank144172.66.8
4Citigroup103133.85.3
5Morgan Stanley71106.84.2
6Barclays120105.44.2
7UBS39100.54
8BNP Paribas11199.53.9
9Credit Suisse7096.73.8
10BofA Merrill Lynch6985.13.4
Total​1,1822,524.80
Global bonds: Feburary 2015
Global bonds: Feburary 2015
Managing bank or groupNo of issuesTotal US$(m)Share (%)
1Citigroup273248.77.6
2JP Morgan268224.16.9
3Deutsche Bank279210.66.4
4Morgan Stanley342208.86.4
5Barclays274184.15.6
6Goldman Sachs196181.65.6
7BofA Merrill Lynch227172.55.3
8Credit Suisse169161.24.9
9Wells Fargo & Co205123.93.8
10HSBC3071073.3
Total​2,9623,268.20
Global equities: Feburary 2015
Global equities: Feburary 2015
Managing bank or groupNo of issuesTotal US$(m)Share (%)
1BofA Merrill Lynch58174.67
2JP Morgan591746.9
3Morgan Stanley68161.36.4
4Goldman Sachs411265
5UBS37118.44.7
6Citigroup39102.84.1
7Deutsche Bank3093.13.7
8Credit Suisse3379.73.2
9RBC CM4165.32.6
10Wells Fargo & Co3160.42.4
Total​693 2,505.3 ​
Global loans: February 2015
Global loans: February 2015
Managing bank or groupNo of issuesTotal US$(m)Share (%)
1JP Morgan8685.87.8
2BofA Merrill Lynch10970.86.4
3Barclays6261.35.5
4Citigroup6754.64.9
5Deutsche Bank4350.24.5
6Wells Fargo & Co9049.54.5
7RBC CM3638.73.5
8Credit Suisse3138.33.5
9Morgan Stanley1935.93.2
10Goldman Sachs2334.43.1
Total​5451,105.40
Fees