The FINANCIAL — UBS Investment Bank on December 22 announces that it has signed a purchase agreement with J.P. Morgan regarding the sale of parts of its non-strategic Commodities businesses.
UBS is pleased to confirm that J.P. Morgan has agreed to buy the entire Canadian-based commodities energy business through a purchase of the shares in UBS Warburg Energy Holdings (Canada) Ltd., a wholly owned holding company. In addition, J.P. Morgan will also acquire UBS’s Global Agricultural business. The transaction is expected to close during the first quarter 2009. Terms of the deal are not disclosed.
This follows the announcement on 3 October this year that the Investment Bank would reprioritize its business portfolio to focus on its core strengths and client franchises in the Securities and Advisory businesses, while downsizing or exiting certain business activities. As part of this, the Investment Bank is exiting all of its Commodities businesses, with the exception of Precious Metals and the Index and Exchange-Traded Commodities activities.
UBS is also in discussions with other third-parties with regards to the potential sale of other parts of its non-strategic Commodities businesses.