(FROM THE WALL STREET JOURNAL 2/2/15)
By Stephen Grocer
The surge in mergers and acquisitions last year continues to pay
off for investment banks in the new year.
Fees from M&A reached $1.3 billion in January, accounting
for 33% of all investment-banking revenue last month, according to
Dealogic. That is up from 27% in January of last year and is the
highest percentage through the first month of the year since 2009.
If that percentage holds up for the rest of the year, it would mark
only the fourth time that M&A has accounted for more than 33%
of investment-banking revenue since Dealogic began tracking the
data in 1995.
Health care set a record for announced deal volume in 2014 and
generated the most M&A fees of any sector last month as deals
such as Medtronic Inc.'s $43 billion buy of Covidien PLC and Merck
& Co.'s $8.4 billion acquisition of Cubist Pharmaceuticals Inc.
closed. In all, investment banks got $322 million from health-care
deals in January, according to Dealogic.
Goldman Sachs Group Inc., which last year became the first bank
since 2007 to advise on $1 trillion in announced deals, collected
17.6% of all fees from M&A, the highest of any bank. J.P.
Morgan Chase & Co. and Morgan Stanley followed with 9.4% and
6.3% of M&A fees, respectively, Dealogic said.
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