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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Morgan Stanley to Sell Stake in TransMontaigne Partners

NEW YORK (TheStreet) -- Morgan Stanley (MS) said on Monday it has agreed to sell its ownership stake in TransMontaigne Partners  (TLP) 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.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 16,563.30 -317.06 -1.88%
S&P 500 1,930.67 -39.40 -2.00%
NASDAQ 4,369.7730 -93.1290 -2.09%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs