JP Morgan is expected to pay $ 1.7bn subject to distributions prior to closing. The assets will be purchased for cash, all payable at closing, and are expected to contribute a profit immediately upon closing.
RBS Sempra Commodities will retain its North American natural gas and power and Solutions businesses. Sempra Energy and RBS will continue to explore strategic options for the remaining businesses. Sempra Energy has retained JP Morgan as its financial advisor to review potential alternatives.
Jes Staley, CEO of the Investment Bank, said: “This almost doubles the number of corporate clients our Commodities franchise can serve and enables us to offer them more products in more regions of the world. This will allow us to be more useful to clients in ways that are important to them.”
Mr Masters, said: “We are pleased to welcome the talented employees of RBS Sempra Commodities to JP Morgan. The skills and relationships they bring will make our Commodities business a true global leader in serving clients.”
The transaction is expected to close in the second quarter of 2010, pending regulatory approvals.
