JPMorgan Chase 'considering Cazenove Group buyout'

JPMorgan Chase is nearing a $1.7 billion deal to buy out broker Cazenove Group, according to unnamed sources close to the firms.

The bank already has a 50 per cent stake in the UK brokerage, for which it paid around $167 million in 2004.

Under the terms of the deal, JPMorgan Chase will receive the remaining half of the business it does not own, subject to approval of the buyout from various boards and committees with a stake in Cazenove Group.

The corporate broker has a large number of notable clients in the UK, including Queen Elizabeth, and is currently advising Lloyds Banking Group on its proposed $23 billion rights offering.

Earlier this year, JPMorgan Cazenove sold its Asian operations to Standard Chartered after the joint venture's profit levels decreased by 15 per cent in 2008.

It made $225 million pre-tax profit last year, in comparison with gains of $264 million in 2007.

By Tony Aynsley