JP Morgan Chase & Co is in talks to purchase the remaining 50% of Cazenove Group it does not own for about GBP1 billion, reported Bloomberg. Acquiring the remainder of Cazenove will allow the US-based bank to consolidate its position in Europe, an important source of revenue for it.
The price equates to about 530 pence a share and the proceeds will be split among Cazenove’s 1,500 shareholders.
Reportedly, JP Morgan entered into the joint venture (JV) with the London-based stockbroker in November 2004. Under the terms of the JV, after five years, JP Morgan had an option to acquire the remaining half from Cazenove. The firms have until February to exercise their options.
Douglas Ciocca, managing director at Renaissance Financial in Leawood, Kansas, said: “This makes sense from a geographic diversity and a revenue diversity perspective. Cazenove will help deepen the bank’s international client relationships and provide steady income.”
However, the deal is yet to get approval from all the necessary boards and committees.
