Bloomberg reports that JPMorgan will ask those suitors for more details on their offers to narrow the list to one exclusive bidder and may choose a winner as soon as this week, said the people, who asked not to be named because the information is private. The process could extend into February, one of the people said.
The biggest U.S. bank by assets decided to sell the business as regulators review a decade-old ruling allowing deposit-taking banks to trade physical commodities. The unit produces $750m in annual income before compensation costs, people with knowledge of the matter have said. The sale of the physical commodities business doesn’t include derivatives or gold bullion storage, the bank has said.
The unit, which had $3.3bn in physical commodity assets according to one person, is overseen by JPMorgan’s commodities chief Blythe Masters. Masters, 44, may join the acquirer to run the operations, depending on which firm wins the auction, said one of the people.
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