This Day On The Street
Continue to site
ADVERTISEMENT
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 to Sell Stake in TransMontaigne Partners

NEW YORK (TheStreet) -- Morgan Stanley (MS - Get Report) said on Monday it has agreed to sell its ownership stake in TransMontaigne Partners  (TLP - Get Report) to NGL Energy Partners for an undisclosed price, as the investment bank works to pare its exposure to commodities businesses amid new banking regulations.

>>Read More: Morgan Stanley Sells Piece of Commodities Business to Rosneft

The deal with NGL Energy includes Morgan Stanley's ownership interests in TransMontaigne, an oil storage, marketing and transportation company, in addition to physical inventory and other storage obligations that the bank had assumed.

Morgan Stanley said the sale won't materially impact its earnings, however, the bank does expect to gain from the transaction. The sale is expected by Morgan Stanley to close in the third quarter and is subject to U.S. regulatory review.

"Morgan Stanley's leading commodities division will be leaner, more client focused and better aligned with the rest of the firm's businesses," Colm Kelleher, head of Morgan Stanley's Institutional Securities division, said in a press release.

Monday's deal follows Morgan Stanley's announcement of a sale of its Global Oil Merchanting unit to the Russian oil and gas giant, Rosneft, late last year.

Morgan Stanley is not the only firm paring its exposure to the commodities business. JPMorgan (JPM) announced a sale of its physical commodities business to Mercuria Energy Group earlier in 2014. 

Deregulation gave banks exemptions that allowed for major investment in non-financial businesses such as the storage and transport of commodities in the energy and metals markets. However, in the wake of the financial crisis, banks have been selling off those investments to meet more stringent regulations on the scope of their businesses.

While Morgan Stanley and JPMorgan have announced large commodities-related sales in the past nine months, Goldman Sachs has not yet followed suit. Goldman Sachs has begun efforts to sell its metal warehousing business, but the nation's largest investment bank has given no indication it is looking to sell its J Aron commodities business.

Morgan Stanley shares were rising less than 1% in early Monday trading at $32.21. Year-to-date shares have gained over 2%.

>>Read More: There's No Justification for Crude Oil Prices in the Stratosphere

-- Written by Whalen MacHale in New York.

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
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
MS $38.17 0.00%
TLP $38.25 0.00%
AAPL $132.54 0.00%
FB $80.54 0.00%
GOOG $540.11 0.00%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs