Reports have speculated that JP Morgan has managed to outrace its rivals Deutsche Bank and Macquarie in a race to takeover RBS Sempra Commodities, and has entered into talks to purchase the trading business for over $4 Billion.
Reports are that a deal could be announced within a few days.
The sale of the business, which is a joint venture between Royal Bank of Scotland and the American group Sempra Energy, was initiated by a European Commission state-aid ruling which was shared last year, and required RBS to divest its stake.
The deal in question would end up making JP Morgan the fourth major name in the commodities trading business, along with Goldman Sachs, Morgan Stanley and Barclays Capital, and has come after a major two year long acquisition drive by JP Morgan Chief Executive Jamie Dimon.
JP Morgan has managed to attract important traders and commodities bankers from its various rivals, more significantly from Goldman Sachs.
With the latest takeover, JP Morgan would be able to extend its branches into the metals and agricultural commodities sector.
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