JPMorgan to sell physical commodities business to Mercuria -source

LONDON, March 19 Wed Mar 19, 2014 6:02am EDT

LONDON, March 19 (Reuters) - U.S. investment bank JPMorgan has agreed to sell its physical commodities business to Swiss trade house Mercuria, a source close to the deal said on Wednesday.

The terms of the deal are not yet clear, but when the bank first opened its books to potential buyers in October it valued the assets at $3.3 billion, the Wall Street Journal reported.

JPMorgan in London declined to comment on the matter. Mercuria could not be reached immediately for comment.

In February, Reuters reported that Mercuria, led by two former Goldman Sachs executives, became the front-runner to buy the physical commodities unit, one of the most powerful oil and metals desks on Wall Street. (Reporting By Dmitry Zhdannikov, editing by Louise Heavens)