After a gap of three years, the Bank of America Merrill Lynch has returned to its top position by executing most number of M&A deals in the year 2013 so far, beating its rivals Citibank and Morgan Stanley despite weak deal volumes, according to an Economic Times report.
The report said BofA-ML executed 21 per cent of total deals worth USD 7.96 billion. Among the deals it executed throughout the year, most prominent were acquisition of United Spirits by Diageo and Etihad Airways' purchase of 24 per cent in India's largest airline Jet Airways.
Meanwhile, Citi and Morgan Stanley followed BofA-ML with deals worth USD 7.43 billion and USD 7.2 billion, respectively. Investment banks have been forced to shift focus to mid-cap companies amid rising competition at the level of bluechip companies and shrinking companies, said the ET report.
Experts are of the view that going ahead this sector will become tougher due to shrinking deal pipeline and dropping volumes. Moreover, they said that current pipeline consists of a lot of stake sales where debt-ridden companies are trying to raise capital.
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