Cazenove Group and JP Morgan have agreed a transaction under which their joint venture, JP Morgan Cazenove, will become a wholly owned part of JP Morgan. There will be continuity in the roles of key employees. The business will continue to operate under the JP Morgan Cazenove brand and provide clients with advice and execution.
The joint venture’s corporate finance business has already been operating closely with JP Morgan in the UK and likely to make little changes to its activities as a result of the transaction. It will remain focused on providing strategic advice to large and small UK clients, as well as raising capital and delivering risk management solutions.
Upon completion of the transaction, JP Morgan will combine the joint venture’s cash equities and research operations with its existing franchise in Europe, the Middle East and Africa, and run the enlarged business under the JP Morgan Cazenove banner.
David Mayhew, chairman of JP Morgan Cazenove, said: “Our joint venture with JP Morgan has been a great success; benefiting our clients, our shareholders and our people. The agreement we have reached is a natural extension of our relationship. It builds on what we have achieved in the past five years and provides a platform for the next stage of development.”
Naguib Kheraj, CEO of JP Morgan Cazenove, said: “For all corporate clients our business will remain fundamentally unchanged – same people, same client approach, and same brand. In institutional equities, the combination of the businesses will enable us to improve and broaden our service to clients.”
Jes Staley, chief executive of investment bank at JP Morgan, said: “Five years ago, JP Morgan and Cazenove agreed to combine their talented people and prestigious brands in an effort to serve clients better. We look forward to continuing that successful partnership in a new era and to growing the businesses. We believe the wholly-owned structure will enable us to offer clients a seamless service in the UK and abroad.”
However, the completion of the transaction is subject to approval by Cazenove shareholders, and is expected in early 2010.
