If it's approved by regulators, the deal would put the commodities business in the hands of energy and commodities trading company Mercuria Energy Group Ltd.
Big banks have long profited from price swings in metals, energy, and other commodities. But some had branched out into owning physical facilities. Last summer JPMorgan said that the possibility of new regulations on whether banks could continue to do that was a factor behind its decision to consider selling some of its physical commodities business, which includes metals and energy assets.
JPMorgan Chase & Co. said Wednesday that after the sale it will still provide traditional banking activities in the commodities markets. It will also continue to make markets, provide liquidity and risk management and offer advice to global companies and institutions.
The deal, which is not expected to have a material impact on JPMorgan's earnings, is targeted to close in the third quarter.
JPMorgan shares rose 13 cents to $58.19 in morning trading. Its shares have risen more than 18 percent over the past year.