The details of the deal
Cazenove will contribute to the joint venture with JPMorgan its corporate broking, equities and corporate finance businesses, including 750 employees and £50 million ($93 million) in capital, and JPMorgan will transfer 70 employees from its UK corporate finance, M&A, and equity and debt capital markets businesses. JPMorgan will also contribute £50 million in capital.
Cazenove's secondary equities business will be 100% owned by the joint venture but JPMorgan will keep its secondary equities business separate.
Cazenove will receive £110 million from JPMorgan and make a capital repayment of £340 million to its shareholders and retired partners.
After five years JPMorgan has a call option to purchase Cazenove's 50% joint venture at a premium to its value, which will be independently assessed at the time. Cazenove has a put option to sell its stake in the partnership to JPMorgan at a discount.
Cazenove's continental European and Asian businesses will be part of the joint venture but will continue to operate under the Cazenove brand. JPMorgan South Africa will acquire Cazenove South Africa.
The joint venture will have a 10-member board made up of three executive directors from Cazenove, three non-executive directors from JPMorgan and four independent non-executive members.