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