LONDON - JPMorgan Chase & Co. is beefing up in Europe by buying the half of Cazenove it does not already own in a deal valuing the 190-year old UK stockbroker at 2 billion pounds ($3.36 billion).
J.P. Morgan Cazenove will become a wholly owned part of J.P. Morgan and its UK investment banking operations will continue to operate as J.P. Morgan Cazenove, the U.S. investment bank said on Thursday.
The deal, which will land windfalls for dozens of top London dealmakers, sees David Mayhew remaining chairman of J.P. Morgan Cazenove, while Chief Executive Naguib Kheraj will oversee the integration, the company said.
JPMorgan, the second largest U.S. bank by assets, bought half of Cazenove five years ago to create a UK investment banking joint venture, and as expected took up the option to complete the deal.
JPMorgan has weathered the financial crisis better than most rivals and is now taking advantage of their problems and grabbing opportunities. It said it will pay 535 pence per Cazenove share, valuing the 50 percent stake at 1 billion pounds and all of the venerable stockbroker at double that. (Reporting by Steve Slater and Douwe Miedema) ($1=.5946 Pound)