Insurance Brief: Prudential to Sell Global Commodities
Today’s news is from the business side of the insurance industry, rather than the patient side. It’s relevant because it speaks to the health of the industry.
Last week, Prudential Financial, Inc. announced that it had reached an agreement with Jefferies Group, Inc, for the sale of its (Prudential’s) global commodities business. The purchase price is $430 million, and is roughly equal to the book value of the company, as of the end of 2010.
The transaction, which must go through regulatory approval before it’s expected closing this summer, will include FCM, Prudential Bache Commodities, LLC, Prudential Bache Securities, LLC, and the UK and Hong Kong-based Bache Commodities Limited, and Bache Commodities, Ltd.