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JPMorgan's physical commodities business sale gets $3.5B

If it’s approved by regulators, the deal would put the commodities business under energy and commodities trading company Mercuria Energy Group Ltd.
Oklahoman Published: March 20, 2014

JPMorgan said on Wednesday that it has made a deal to sell its physical commodities business for $3.5 billion as regulators weigh restricting banks’ ability to control power plants, warehouses, and oil refineries.

If it’s approved by regulators, the business would belong to energy and commodities trader Mercuria Energy Group Ltd. Big banks have long profited from price swings in metals, energy, and other commodities.

Last summer JPMorgan said that possible limits on whether banks could own physical facilities led to selling some of its businesses, including metals and energy.

JPMorgan shares rose 24 cents to $58.30 on Wednesday.

Associated Press