JPMorgan Chase & Co. Announces $3.5 Billion Sale of Physical Commodities Business

Today JPMorgan Chase (NYSE: JPM  ) announced it has come to a definitive agreement with Mercuria Energy Group Limited to sell its physical commodities business for $3.5 billion.

Mercuria is an energy and commodities trading firm that was founded in 2004. It will be acquiring the trading business from JPMorgan Chase in an all-cash transaction. JPMorgan says it will work to ensure its assets, transactions, employees, and the physical trading operations themselves are all transitioned smoothly upon the completion of the transaction.

"Our goal from the outset was to find a buyer that was interested in preserving the value of J.P. Morgan's physical business," said the head of JPMorgan's global commodities business, Blythe Masters, in the announcement of the sale. "Mercuria is a global leader in the commodities markets and an excellent long-term home for these businesses."

JPMorgan began looking to get rid of its physical commodities business after new regulations crimped its ability to control power plants, warehouses, and oil refineries.

The sale of the business is subject to regulatory approval, after which the transaction is expected to be completed by the end of the third quarter. The firm also noted the sale is "not expected to have a material impact on JPMorgan Chase's earnings."

JPMorgan Chase highlighted that following the sale it will continue to offer the commodities markets access to its traditional banking operations, which include the valuing and trading of precious metals as well as market making, liquidity and risk management, among other services.

-- Material from The Associated Press was used in this report.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2881424, ~/Articles/ArticleHandler.aspx, 8/28/2015 1:31:06 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Patrick Morris

After a few stints in banking and corporate finance, Patrick joined the Motley Fool as a writer covering the financial sector. He's scaled back his everyday writing a bit, but he's always happy to opine on the latest headline news surrounding Berkshire Hathaway, Warren Buffett and all things personal finance.

Today's Market

updated Moments ago Sponsored by:
DOW 16,612.21 -42.56 -0.26%
S&P 500 1,985.59 -2.07 -0.10%
NASD 4,816.97 4.26 0.09%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 1:15 PM
JPM $64.17 Down -0.31 -0.48%
JPMorgan Chase & C… CAPS Rating: ****