US financial giant JP Morgan finally ended speculations on Thursday by concluding the buy-out of Cazenove brokerage business for £1 billion.
JP Morgan already owns about half of the190-year-old stockbroker Cazenove and will pay 535p per share, consisting of 510p upon closing for the sale and a dividend of 25p per share for the remaining stake in Cazenove, valuing the business at £2 billion.
Under the deal, Cazenove's employees will get £200 million, while the former staff will receive £540 million. £160 million will be paid in deferred share awards. The rest of the stake is possessed by institutional investors.
Now, JP Morgan is eyeing on becoming Europe's top investment lender.
Cazenove's Chief executive Mr. Naguib Kheraj, who will oversee the integration, said that the deal would bring US bank's institutional equities business in Europe.
It was in 2004 when JP Morgan and Cazenove agreed to combine their investment banking operations in the UK in a 50-50 joint venture called JPMorgan Cazenove.
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