Reuters: JPMorgan in exclusive talks with Mercuria on commodities sale

|About: JPMorgan Chase & Co. (JPM)|By:, SA News Editor

Trading house Mercuria, led by two former Goldman Sachs execs, has become the front-runner to buy the physical commodities unit of JPMorgan (JPM +0.5%), according to Reuters.

Mercuria reportedly had been competing with Macquarie and Blackstone (BX) to buy the JPMorgan unit.

JPM has valued its physical commodity business at $3.3B, but the deal value likely will depend on the valuation of large stockpiles of oil and metals the bank holds.

A final deal could take a few months to conclude, but a successful outcome would vault Mercuria into the top tier of trading houses with Glencore Xstrata, Vitol and Trafigura.