
JPMorgan Seals Deal for RBS Sempra
Updated from 12:15 a.m. EST
NEW YORK (
) --
JPMorgan Chase
(JPM) - Get Report
has reached an agreement to buy the global oil, global metals and European power and gas assets of
RBS Sempra Commodities
for $1.7 billion.
The deal is expected to close in the second quarter.
RBS Sempra Commodities will retain its North American natural gas and power and solutions businesses.
Royal Bank of Scotland
(RBS) - Get Report
and
Sempra Energy
(SRE) - Get Report
will explore strategic options for the remaining businesses, a press release said.
Sempra Energy has retained JPMorgan as its financial advisor to review potential alternatives.
The North American pieces of RBS Sempra Commodities account for 64% of RBS Sempra's trading revenue, the
Wall Street Journal
reports, citing a November filing with the
Securities and Exchange Commission
.
Sempra Energy is seen as the most likely candidate to buy the North American operations. Other bidders could include
Deutsche Bank
(DB) - Get Report
and Australia's
Macquarie Group
, both of which had put in bids for all of RBS Sempra Commodities, the
Journal
adds.
RBS, which paid $1.7 billion for a 51% stake in the business in April 2008, had to sell its stake in RBS Sempra under a deal to receive aid from the U.K. government.
-- Reported by Joseph Woelfel in New York.
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