In keeping with its strategy of streamlining operations and
focusing on core businesses,
JPMorgan Chase & Co.
) has announced the divestiture of yet another unit. The company
will be vending off its Corporate Dealing Services business to the
U.K.-based The Equiniti Group.
The Corporate Dealing Services business offers all types of
share-based remuneration schemes. Further, as part of the deal,
JPMorgan will partner Equiniti and continue to serve its corporate
Notably, the financial terms of the transaction were not revealed.
Nevertheless, the deal is expected to be closed by Aug 2014 end.
Upon completion, the business will be integrated into Equiniti's
Investment Services division. This unit presently holds custody of
approximately £17 billion as client assets. Further, all the
present employees of Corporate Dealing Services business will be
absorbed into Equiniti.
Equiniti, formed when Advent International Corp. acquired
Lloyds Banking Group Plc
) Lloyds TSB Registrars shareholder-services business in 2007, is a
financial and business service provider., It is the largest
provider of shareholder services to FTSE 100 companies in U.K.
With overall adverse macroeconomic scenario and continued
fundamental pressure, the divestiture is a valid step for JPMorgan.
Since 2014 beginning, the company has sold off a couple of
In March, JPMorgan entered into a definitive agreement with
Mercuria Energy Group Limited for the sale of its physical
commodity trading business for $3.5 billion. Further in April, the
company sold its 401(k) record-keeping business and Retirement Plan
Services business to Great-West Financial.
Currently, JPMorgan carries a Zacks Rank #4 (Sell). Some
better-ranked banks include
). While KeyCorp holds a Zacks Rank #2 (Buy), BB&T has a Zacks
Rank #3 (Hold).
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