‘MERGER’: a $90 billion party for investment banks, lawyers, accountants and consultants

Drugmakers Bristol-Myers Squibb and Celgene will pay about $1 billion in fees to seal their $90 billion tie-up, including more than $300 million to financial advisers, in one of the most lucrative advisory assignments ever recorded on Wall Street. The fees will be split among a handful of investment banks, including Morgan Stanley, JPMorgan Chase and Citigroup, as well as the lawyers, accountants and consultants who advised on the deal to unite the two pharmaceutical companies… Some $304 million will be paid to the five investment banks for their work advising on the deal, ranking among the biggest paydays ever for advisory services on a takeover… The overall costs on the deal rival the near $1 billion spent on Japanese drugs group Takeda’s purchase of Shire last year, although it is dwarfed by the roughly $2 billion of expenses and fees owed on brewer Anheuser-Busch InBev’s £79 billion takeover of SABMiller in 2016… Payouts, which are likely to run into the millions of dollars, are also due to legal counsel Kirkland & Ellis and Wachtell Lipton, accountants KPMG, EY and Deloitte, as well as payments to public relations advisers including Joele Frank. The companies will also have to pay the costs to retire some of Celgene’s debt at a premium.
Eric Platt and James Fontanella-Khan