Wells to Buy J.P. Morgan Trust Unit

Wells Fargo & Co., the fifth-largest U.S. bank, agreed to buy part of J.P. Morgan Chase & Co.’s corporate trust and custody businesses in Rochester, N.Y., Dallas and Houston to add about 700 customers.

San Francisco-based Wells Fargo didn’t disclose the terms. The assets include the management of 401(k) retirement and profit-sharing plans for mostly mid-sized companies, said Laurie Nordquist, executive vice president in charge of Wells’ institutional trust unit.

The purchase, to close by the end of June, involves $5 billion to $6 billion in assets in Texas, she said. The assets being sold are part of J.P. Morgan Fleming Asset Management, which had $583 billion under management at the end of the first quarter.

“The Texas market is a key growth area for us,” Nordquist said in an interview. Two-thirds of the customers affected by the purchase are in Texas and the rest are in Rochester, she said.

Wells Fargo shares rose 32 cents to $51.30. J.P. Morgan closed up 23 cents to $34.63. Both are traded on the New York Stock Exchange.