By Julie Steinberg and Duncan Mavin
JPMorgan Chase & Co. is playing a game for some of Greensill Capital’s clients, according to people familiar with the matter, overturning an offer from Apollo Global Management Inc. to buy the financial startup’s core business.
America’s largest bank by assets is partnering with Taulia Inc., a technology platform that was a primary source of customers for Greensill. JPMorgan would provide $ 3.8 billion to fund deals with former Greensill customers on Taulia’s platform, the people said.
Other banks should join in and add more funding later, the people said.
JPMorgan’s entry complicated talks between Apollo, Greensill and its insolvency administrators, according to people familiar with the talks. An Apollo deal is now unlikely, people said. Apollo was in talks with Greensill to buy its core business for around $ 100 million, The Wall Street Journal reported last week.
Greensill filed for bankruptcy in the UK on Monday. The company plunged into crisis last week when Credit Suisse Group AG froze $ 10 billion in investment funds that invested exclusively in Greensill’s supply chain loans, a type of cash advance to short term for companies. Without funds from Credit Suisse, Greensill was unable to process new transactions.
Bloomberg News reported earlier that the Apollo-Greensill talks have stalled.
(END) Dow Jones Newswires