JPMorgan reveals £1bn deal to buy Cazenove
US investment bank JPMorgan is to fully buy Cazenove, the UK broker, in a £1 billion ($1.7 billion) deal.
The deal comes as JPMorgan bought half of Cazenove in 2004 ago and created the JPMorgan Cazenove joint venture. It paid £700 million for the 50% stake.
Under the original terms set five years ago, the US investment bank had until February next year to exercise an option to buy out its partner.
According to sources close to the situation, Cazenove chairman David Mayhew, and Naguib Kheraj, chief executive, will get major roles at the US bank but there is speculation that there could be job losses as a result of the deal.
Cazenove can trace its roots back to 1819 and is rumoured to be the stockbroker to the Royal Family.