J.P. Morgan, the investment banking arm of JPMorgan Chase & Company (NYSE:JPM), plans to acquire the Canadian energy operations and global agricultural business of UBS AG (NYSE:UBS) for an undisclosed amount. The Canadian firm will become an indirect wholly owned subsidiary of J.P. Morgan.
The energy desk at J.P. Morgan has lacked a Canadian presence, and thatis something this move is meant to correct. Canada is the largestexporter of oil and gas to the US market, and that position will onlyget stronger as time goes on.
UBS is facing its own problems right now and welcomes the cash. TheSwiss bank’s share price is off more than 70% from 52-week highs. UBSshares are down about 2% this morning; JPMorgan Chase shares aretrading about 1.5% higher.
December 22, 2008