LONDON (AP) — Royal Bank of Scotland PLC said Tuesday that its joint-venture commodities unit RBS Sempra Commodities has sold its metals, oil and European energy businesses to investment bank J.P. Morgan for $1.7 billion.
RBS, which is 84 per cent owned by the British government, will get 47 per cent of the sale price, and expects to report a small gain on the deal, it said.
“We believe we have struck a fair price and contract with J.P. Morgan,” said Bruce Van Saun, RBS’ group finance director.
“The remaining assets in RBSSC, namely the North American power and gas businesses, remain of high value and are performing well. Along with our joint-venture partner, Sempra Energy, we continue to actively consider various ownership alternatives for the remainder of RBSSC.”
J.P. Morgan said the acquisition would be integrated into its existing Global Commodities business.