New York: JPMorgan is selling its physical commodities business for $3.5 billion to the energy and commodities trading company Mercuria Energy Group Ltd.
Last summer JPMorgan said that the possibility of new regulations on whether banks should be allowed to control power plants, warehouses and oil refineries was a factor behind its decision to consider selling some of its physical commodities business, which include metals and energy assets.
JPMorgan Chase & Co. said on Wednesday that after the sale it will still provide traditional banking activities in the commodities markets. It will also continue to make markets, provide liquidity and risk management and offer advice to global companies and institutions.
The deal, which is not expected to have a material impact on JPMorgan's earnings, is targeted to close in the third quarter.