Deutsche Bank, traditionally the go-to lender in Europe’s largest economy, is the most notable absentee in the year’s largest takeover.
Bloomberg News reports that the bank missed out on the advisory and top-tier financing roles on Bayer’s $62bn bid for Monsanto Co., according to people with knowledge of the matter. The company chose to advise rival German chemicals giant BASF SE, which has studied but so far sat out the biggest-ever consolidation wave in the global crop chemicals and seeds industry, the people said.
Because of the potential client conflict, Deutsche Bank didn’t join the more than a dozen lenders pitching at Bayer’s headquarters in Leverkusen for a financing role, the people said. In the end, the company picked Goldman Sachs, HSBC and JPMorgan to work alongside its main advisers, Bank of America and Credit Suisse, to secure $63bn in short-term loans, said the people.
The miss comes at a time when CEO John Cryan faces the challenge of trying to maintain an edge over the competition while shrinking the investment bank and reorganizing staff.
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