JPMorgan has completed the sale of its physical commodities unit to Mercuria, the fast-growing Swiss trading house said on Friday as it expands into metals and North American markets to enter the top league of commodities traders.
Reuters reports that the deal, announced last March, was originally valued at $3.5 billion (2.19 billion pounds) but the price decreased to around $800 million because Mercuria bought less metals and oil in JPMorgan's storage, sources close to the deal said.
JPMorgan decided to sell its multibillion-dollar physical commodities division last year because of rising regulatory and political pressure, and so it could concentrate on the bank's core business of lending.
'When we founded Mercuria 10 years ago, it was our goal to develop a global energy-focused commodities group,' said Marco Dunand, chief executive of Mercuria.
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