JPMorgan to sell commodities business to Mercuria - WSJ

Wed, 19 Mar - 7:25pm

March 19 (Reuters) - JPMorgan JPM.N will sell its commodities trading business to Switzerland-based energy-trading company Mercuria Energy Group Ltd, the Wall Street Journal reported, citing a person familiar with the situation.

In February, Reuters reported that Mercuria, led by two former Goldman Sachs GS.N executives, became the front-runner to buy the physical commodities unit, one of the most powerful oil and metals desks on Wall Street. News Search ID:nL5N0LA4IS

The terms of the deal are not yet clear, but when the bank first opened its books to potential buyers in October it valued the assets at $3.3 billion, the newspaper reported. (http://r.reuters.com/jaf77v)

JPMorgan in London declined to comment on the matter. Mercuria could not be reached immediately for comment.

JPMorgan decided to sell its multi-billion dollar physical commodities division last year under rising regulatory and political pressure to retreat to the bank's core business of lending instead of speculating in raw materials.

(Reporting by Chris Peters in Bangalore; Editing by Gopakumar Warrier)

((chris.peters1@thomsonreuters.com)(within U.S. +1 646 223 8780, outside U.S. +91 80 6749 6019)(Reuters Messaging: chris.peters1.thomsonreuters.com@reuters.net))

Keywords: JPMORGAN MERCURIA/

URN: 
urn:newsml:reuters.com:20140319:nL3N0MG2J6:2
Topics: 
CRU EEU INDS ENR METL DEAL1 DRV RTRS BMAT REGS FIN ENER US AU COM MRG BACT WEU MTAL NRG AMERS INVB INVD GB CMPNY INVM MINE BANK MIN EUROPE DVST OILI OILG CISC MET AGRI FINS EUROP FUND COAM ASIA EMRG PVE BISV LEN CH RU NEWS1 INVS BSVC BNK CONG CEEU

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