Busted Deals Have Cost Banks Over US$300 million
In the world of mergers and acquisitions, 2015 was a record breaking year. However 2016 is proving to be a year of broken deals. More than $395.4 billion in US mergers, including, most recently, Staples’s combination with Office Depot, have fallen apart in 2016, according to data provider Dealogic, felled by exacting regulators, rocky markets or reluctant targets .
“More than $395.4 billion in US mergers, including, most recently, Staples’s combination with Office Depot, have fallen apart in 2016.”
Three of the largest collapsed deals this year – Pfizer’s takeover of Allergan, Halliburton’s purchase of Baker Hughes and Staples’ merger with Office Depot – will cost banks more than $300 million in advisory fees, according to a review of regulatory filings. That does not include potentially large fees banks aren’t legally required to disclose.
Uncertain markets, continued challenging trading conditions, tighter regulation and increased competition have placed greater pressure on banks to operate more efficient businesses with fewer resources for optimal performance.
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