Deutsche Bank Top Dealmaker For 2014, International M&A on 7 Year High
Deutsche Bank Top Dealmaker For 2014, International M&A on 7 Year High
Deutsche Bank has become the top dealmaker in India through fees earned in the year 2014. The German bank has earned USD 31 million in investment banking revenue. It has moved up to number one from the fifth position it held last year, according to Dealogic.
Battle of the Titans
Deutsche Bank stood at number one, but Wall Street genius Citigroup retained the second rank through a collection of USD 27 million in the year even as i-banking fees fell 13% to USD 347 million.
Deutsch has had a good innings in equity and debt market deals with a share of 8.9%. ET reports that even as there was a pick up in the capital market activity, overall total i-banking revenue has fallen.
Standard Chartered, another massive Titan with USD 25 million and a 7.3% share reached third in rank rising 6 places from last time. Associated with M&A deals such as United Spirits sale of Whyte & Mackay or Neotel’s sale by TATA Communications, Standard Chartered has gained considerable leverage through expert advice it has provided to clients.
Close Calls
The gap between the reigning companies was not only close. In some cases, banks had identical figures and ranks. Credit Suisse and J. P. Morgan are equal at USD 20 million in fees with 5.7% share while Axis Bank reached a 4.5% share and came in sixth.
Fall in Debt Market Deals
Debt market deals fell to USD 40 billion, according to ET. Traditional i-banking fees did not consider syndicated lending revenue. In the latter, SBI was the leader with USD 83 million in earnings.
Merges and Acquisitions on a High in 2014
Global value for mergers and acquisitions has reached its highest annual level since the year 2007. Large deals in sectors such as telecom, healthcare and consumer sectors spurred the numbers. Chain reactions were also created as rivals sought to outdo each other in the deals and acquisitions space. So, Facebook and Google slugged it out on a race for “App”iness while Apple and HP took their quest for cloud computing to a whole new level.
What the Future Holds?
An economic slump in Russia and the fall of oil prices have led the markets into a situation where deal making may slacken, according to Reuters. Risk aversion is the consequence, say key analysts who are monitoring the situation. Geopolitical risks aside, the US treasury move to deter inversion deals also will have an impact on the merger and acquisition space, says Reuters. While technology expands at a rapid rate and so do startups, the global economic environment would be impacted by merger and acquisition deals too.
