JP Morgan buys RBS Sempra Commodities

RBS Sempra Commodities, part-owned by Royal Bank of Scotland, has agreed to sell its European and Asian operations to US investment bank JP Morgan for 1.7 billion dollars, the bank announced last week.

"The Royal Bank of Scotland Group plc today announced that RBS Sempra Commodities has agreed to sell its Metals, Oil and European Energy business lines to JP Morgan," RBS said in a statement.

"The deal will see JP Morgan acquire these activities for a total cash consideration of 1.7 billion dollars of which RBS's share ... is approximately 47 percent."

JP Morgan had been expected to buy all of RBS Sempra (RBSSC) - roughly half-owned by US group Sempra Energy - until reports earlier this month said the investment bank had ruled out purchasing the North American assets.

The change of heart was said to have been caused by US President Barack Obama's plan to clampdown on bank trading.

The European Union ruled that RBS must sell its stake in RBS Sempra following the bank's state rescue in the wake of the financial crisis. RBS is 84-percent owned by the British government after a multi-billion-pound bailout.

(AFP)