In a record 12 months for M&A volumes, the big US banks dominated the revenue and volume league tables in Europe while, as usual, Rothschild advised on a higher number of transactions than any other firm.
Goldman Sachs led the overall regional league tables from Morgan Stanley, although it was nip and tuck country by country in 2021. Goldman topped the tables in the UK, Germany and the Nordics; Morgan Stanley edged ahead of it its great rival in France, Spain and Italy.
In the first quarter of this year, Morgan Stanley headed the revenue table while Goldman topped the volume table.
However, Morgan Stanley wins the award this year as the region’s best bank for advisory because of its role in a number of landmark transactions, often reflecting previous work for longstanding corporate clients and a track record of bringing new and innovative ideas to the table.
In March 2021, AerCap Holdings announced an agreement with General Electric to acquire GE Capital Aviation Services in return for approximately $30 billion in consideration, consisting of newly issued AerCap shares, $25 billion in cash and a stake in the combined company, which will be an industry leader across all areas of aviation leasing with over 2,000 owned and managed aircraft. The deal was completed last November.
Morgan Stanley served as financial adviser to AerCap in this complex cross-border acquisition and has a long history as a trusted partner, having led its IPO in 2005 and advised on the acquisitions of Genesis Lease in 2010 and ILFC in 2013.
Morgan Stanley acted as lead adviser to IHS Markit on its all-stock combination with S&P Global, a $47 billion transaction completed in February 2022 that was first announced in November 2020, the largest deal announced that year.
Another big deal announced in 2020 and completed in July 2021 was AstraZeneca’s $42.1 billion acquisition of Alexion Pharmaceuticals.
Morgan Stanley acted as joint financial adviser and joint corporate broker to AstraZeneca, in addition to serving as the lead left arranger and bookrunner on the $17.5 billion fully underwritten bridge facility to support the acquisition. This transaction demonstrates the firm’s strength in healthcare M&A advisory and underscores its longstanding relationship with AstraZeneca in that company’s largest acquisition.
Morgan Stanley was the lead financial adviser to Allied Universal and provided committed financing for the $7.3 billion acquisition of G4S, which was completed last April. Morgan Stanley has a strong and long-term relationship with Allied Universal, having provided financing for the Allied Barton/Universal Services merger in 2016, provided acquisition financing for the USSA acquisition in 2018 and advised on the sale of the company to Warburg Pincus and CDPQ in 2019.
And the firm was joint lead financial adviser to Vivendi on the $32 billion spin off of Universal Music Group.
As we emerge from Covid, European corporates are looking for broader global exposure and for opportunities to enter higher growth markets
Colm Donlon
The US firm came into 2022 with high hopes for M&A in Europe, where, even after the war in Ukraine, the region is still on track for a stellar year.
Colm Donlon, head of M&A in Europe, Middle East and Africa for Morgan Stanley, sees deals continuing, “especially considering the need for supply-chain efficiencies and improved infrastructure or platform integration across continental Europe.”
He also sees scope for cross-border transactions, even in an era of companies localizing production.
“As we emerge from Covid, European corporates are looking for broader global exposure and for opportunities to enter higher growth markets,” he says.
