The deal excludes the more valuable North American businesses of RBS Sempra Commodities. Initially, JP Morgan was interested in acquiring all of RBS Sempra businesses, however, due to a new Obama administration proposal Volcker Rule that could force large commercial banks to exit from proprietary-trading businesses, it has decided not to pursue. The US-based lender also felt that the North American assets did not fit with its current energy trading business.
Ever since the European Union regulators had ordered RBS to sell its 51% stake along with insurance businesses and some retail branches in exchange for receiving aid from the UK government the deal has taken several turns. Bids last year for all of RBS Sempra attracted more than $4bn. Bidders included Deutsche Bank and Macquarie Group.
Reportedly, the likely candidate to buy the North American assets may be Sempra Energy, which owns 49% in RBS Sempra, a commodities joint venture, with RBS owning the remaining 51%.
Connecticut-based RBS Sempra Commodities trades natural gas, petroleum, metals and other commodities. RBS and Sempra hired investment bank Lazard to handle the sale of the full business.
