Advisors may reap $166 million in fees from Chemchina's Syngenta deal

Fees from ChemChina's united $43 billion bid for Swiss seeds and pesticides cluster Syngenta (SYNN.VX) may offer a $166 million day for the advisors, in line with estimates from Thomson Reuters and freewoman Consulting.

For the most important ever foreign purchase by a Chinese firm, ChemChina was suggested by HSBC (HSBA.L) and China CITIC Bank International (601998.SS).

They could share spoils of between $65 to $95 million in fees, in line with the estimates.

On the opposite aspect of the table, Syngenta was suggested by Dyalco, the one-woman business of former anarchist Sachs investment banking co-chairman Gordon Dyal, aboard JP Morgan (JPM.N), anarchist Sachs (GS.N) and UBS (UBSG.VX).

Their fees may vary from between $59 and $71 million, with the lion's share planning to lead advisors.

"Our deal fees square measure supported similar transactions of an equivalent size vary, however we have a tendency to do take into consideration the deal specifics like cross-border versus domestic acquisitions, and therefore the truth this is often a Chinese company creating a mega acquisition outside of China," aforesaid Lam Nguyen, director at freewoman Consulting.

"Those 2 created our estimates on top of a traditional domestic acquisition."

In general fees for those advising a vendee square measure generally but for those banks advising the vendor, however freewoman estimates that as a result of this is often a cross-border acquisition with many hurdles to clear before a deal is closed, fees may be higher.

For deal finance, ChemChina would wish to pay around zero.4 to 0.8 % of the number to be borrowed either via bond issuances, loan packages or a mixture of each, in line with freewoman estimates.

ChemChina has secured finance commitments from HSBC, China Citic and different Chinese banks enough to accumulate one hundred pc of Syngenta, a supply with direct information of the deal has aforesaid.