Updated from 12:15 a.m. EST
NEW YORK (
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
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
, both of which had put in bids for all of RBS Sempra Commodities, the
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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