RBS offloads Sempra Commodities in $1.6bn deal

Royal Bank of Scotland (RBS), which is 84% owned by the taxpayer, has announced it has completed the sale of its metals, oil and European energy business, Sempra Commodities, to US investment bank, JP Morgan, in a $1.6 billion (£1.1 billion) deal.

Sempra, which is based in San Diego reported 2009 revenues to be in the region of $8 billion. The company has a workforce of almost 14,000 and serves approximately 29 million consumers worldwide.

The disposal of Sempra follows the orders of the European Commission, as a punishment of the billions of pounds in state aid that RBS received by the Government.

RBS is currently selling its Williams & Glyn’s network of branches and Spanish banking giant, Santander, submitted an offer last month.

Commenting on the deal, Jes Staley, chief executive of JP Morgan’s investment banking division, said: “This acquisition extensively expands our global commodities capabilities, enabling us to extend our reach in the commodities space dramatically.

“This addition is a great fit for our business as it helps us further serve our clients,” he added.

In related news this week, the Banker magazine ranked RBS as the world’s fourth-largest lender.

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