J.P. Morgan to Acquire UBS’ Canadian Energy and Global Agricultural Businesses

New York.- J.P. Morgan announced today that it will acquire UBS Commodities Canada Ltd., the Canadian energy operations of UBS AG, as well as the firm’s global agricultural business. Terms of the acquisitions, which are expected to close during the first quarter of 2009, were not disclosed.

With operations and employees based in Calgary, UBS Commodities Canada Ltd. will become an indirect wholly-owned subsidiary of J.P. Morgan. The acquisition will allow J.P. Morgan to immediately expand its presence in the Canadian natural gas, power and crude oil physical and financial markets, while further expanding the investment bank’s overall Canadian client franchise. J.P. Morgan’s Calgary office will be run by Brian Cumming, a managing director with extensive experience in the commodity markets. Mr. Cumming was most recently based in J.P. Morgan’s London office.

J.P. Morgan will also acquire UBS’ global agricultural business, which includes a London-based trading and marketing team. The addition of UBS’ business will expand J.P. Morgan’s client franchise and risk management capabilities across agricultural products.

“We continue to take advantage of opportunities that will further enhance and diversify our global commodities business,” said Blythe Masters, head of Global Commodities at J.P. Morgan. “The addition of these businesses and talented teams further expands our North American energy franchise and provides further depth to our growing agricultural and soft commodities platform.”

J.P. Morgan’s Global Commodities division has grown significantly over the past two years, both organically and through acquisitions. During that time, J.P. Morgan has hired more than 100 trading, sales and marketing professionals across the regions. Earlier this year, J.P. Morgan acquired two key commodity franchises, ClimateCare and Bear Energy. ClimateCare is a carbon-offset company that originates and trades carbon emission reduction offsets in both the compliance and voluntary markets.
Bear Energy was a large physical and financial U.S. power and gas franchise based in Houston that J.P. Morgan obtained as part of the larger Bear Stearns acquisition.