M&A sector to dine out on Rio Tinto venture

THE JOINT venture between mining giants BHP Billiton and Rio Tinto is to pay dividends for the revenue-hungry investment-banking sector, with Morgan Stanley, Gresham Partners, Goldman Sachs and Lazard lining up to benefit from the deal.<br /><br />The deal, the second largest so far in a year where mergers &amp; acquisitions (M&amp;A) activity is down 43 per cent, will change the global M&amp;A landscape, according to the latest weekly Thomson Reuters Investment Banking Scorecard.<br /><br />It said an earlier deal in which miner Chinalco had pledged a $19bn (&pound;11.5bn) investment in Rio Tinto had involved seven investment banks.<br /><br />But when that deal collapsed and the BHP Billiton venture took over, only Morgan Stanley was brought through into the final adviser line-up.<br /><br />Morgan Stanley now ranks top of the global announced M&amp;A league, advising on 102 deals worth $312bn (&pound;189bn) this year so far &ndash; 38.4 per cent of the market share. <br /><br />In the same period in 2008 the US investment bank ranked eighth with a 17.8 per cent share of the market.<br /><br />The Investment Banking Scorecard also claimed equity capital market offerings from real estate issuers have risen 85 per cent this year so far.