This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Morgan Stanley Sells Oil Merchanting Unit to Russia's Rosneft

NEW YORK (TheStreet) - Investment bank Morgan Stanley (MS - Get Report) said on Friday it will sell its Global Oil Merchanting unit to Russian oil and gas giant Rosneft, exiting some of its investment in global storage, trading and transportation of oil and refined products.

About 100 Morgan Stanley executives, or one-third of the firm's total commodities front office, will move over to Rosneft, as part of the deal.

Morgan Stanley's merchanting business includes a network of oil terminal storage agreements, inventory, physical oil purchase, sale and supply agreements, equity investments and freight shipping contracts. Rosneft will also be buying Morgan Stanley's non-controlling 49% stake in Heidmar Holdings.

The deal won't include Morgan Stanley's oil trading business, its ownership stake in TransMontaigne, or any of its non-oil commodities businesses. Morgan Stanley said in a statement it is currently exploring strategic options for its stake in TransMontaigne.

The New York-based bank said the sale isn't expected to have a material impact on its financial results. Terms of the sale weren't disclosed. The transaction, which is subject to U.S. and E.U. approvals, is expected to close in the second half of 2014.

Morgan Stanley shares rose less than 1% in Friday trading to 430.96. Shares have gained over 60% year-to-date, more than doubling gains made by the broader S&P 500.

-- Written by Antoine Gara in New York

Follow @antoinegara

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
MS $36.96 0.00%
AAPL $127.60 0.00%
FB $83.09 0.00%
GOOG $535.38 0.00%
TSLA $205.27 0.00%


DOW 18,034.93 +208.63 1.17%
S&P 500 2,100.40 +19.22 0.92%
NASDAQ 4,994.6020 +62.7870 1.27%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs