JPMorgan nearing deal for commodity unit sale

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

The announcement of a sale to Geneva-based Mercuria Energy Trading could come within the next week, reports CNBC. Mercuria had entered exclusive negotiations with JPMorgan (JPM +1.9%) about  month ago after beating out dozens of other suitors.

Mercuria is expected to buy nearly all of JPMorgan's physical assets, leaving only a handful of power plants that were already on track to be sold before Mercuria entered the picture.

"You've got lower revenue, higher costs, you put those things together, it's not conducive to staying in the business," says finance professor Craig Pirrong, summing up the Bank of Dimon's reason to sell.