JPMorgan Said to Win Worldpay Role in Corporate Broking Pushby
Bank serves as broker to most companies in U.K.’s FTSE 350
Bank is seeking to hire to build on legacy of David Mayhew
JPMorgan Chase & Co. has been picked to replace Credit Suisse Group AG as corporate broker to Worldpay Group Plc, one of the U.K.’s 100 biggest companies, according to two people with knowledge of the matter.
The payment processing company, which started trading in London in October 2015, may make an announcement on the decision as early as this week, said the people, who asked not to be identified because the matter isn’t public. Worldpay currently has a market value of 5.6 billion pounds ($7 billion).
Brokers typically advise companies and support their relations with investors for minimal fees, in the expectation of winning more lucrative business, such as arranging debt deals or share sales. JPMorgan advises 117 companies in the FTSE 350 index of Britain’s largest firms that trade in London, more than any other bank.
Gaining Worldpay is a boost for the bank after it lost its leadership position last year to Bank of America Corp. as broker to Britain’s biggest 100 publicly trading companies. JPMorgan generated $5.95 billion in revenue from investment banking globally in 2016, the second-most among all banks, according to data from Bloomberg Intelligence.
Unlike Credit Suisse and a number of other investment banks, JPMorgan wasn’t an adviser to Worldpay in its initial public offering, which raised about 2.2 billion pounds. An official for the Swiss bank declined to comment on the corporate broking role.
Investment banks compete for the prestige and potential fees from advising the U.K.’s biggest firms. JPMorgan is hiring to build its broking business in the U.K., building on the legacy of veteran stockbroker David Mayhew, credited with establishing its Cazenove network.
Mayhew “built a very strong team of bankers, but we’re ready to invest in and hire talented individuals where we think they’ll add value to our franchise,” Ina De, co-head of the U.K. bank JPMorgan, said in an interview. De said that the bank’s push could be seen in numerous visits by Chief Executive Officer Jamie Dimon to the broking clients.
BofA advises 32 clients in the FTSE 100, with wins in the past five years including GlaxoSmithKline Plc, Diageo Plc, Lloyds Banking Group Plc and Standard Chartered Plc. “We have real momentum,” says Peter Luck, head of corporate broking at Bank of America Merrill Lynch.