Hello guys, Today’s I am bring HDFC Bank mega merger. Shifting our Focus to a colossal merger in the Indian banking world that is leaving financial advisors with little to celebrate, the 64 billion dollar merger between Housing Development Finance Corp. and HDFC Bank Limited has created one of them.
OST valuable Banks worldwide, but surprisingly, the advisors involved are reaping meagre rewards.
Sources familiar with the matter reveal that approximately 18 advisors involved in the merger have had to settle for a fee pool of just over one million dollars, and in a rather interesting twist, big players like Morgan Stanley and Bank of America will be taking the lion’s share of that pool.
Meanwhile, global banking giants like Citigroup, Goldman Sachs, JPMorgan Chase, and Jeffrey’s Financial Group were among the 18 advisors involved, leaving the rest with only a small amount.
lying in The Limited role that the advisors played during the merger process was evidently that the board and the executives led by Deepak Parikh, the then chairman of HDFC, were the main driving forces behind the merger, and as a result, many of the advisors were caught off guard, only learning about the major a day before it was announced, with minimal work to be done on the deal.
Their contribution was significantly diminished. It’s important to note here that these struggles are not unique to India.
Financial advisors worldwide have been grappling with a drop in the value of mergers, acquisitions, and initial public offerings amounting to a staggering one trillion dollar year on the decline in the first half of this year, and this downturn has forced many banks to implement job Cuts in their investment banking divisions globally.
