Friday, July 2, 2010

JPMorgan (NYSE:JPM) Completes Acquisition of RBS Sempra Commodities Unit

JPMorgan (NYSE:JPM), Sempra Energy (NYSE:SRE) and The Royal Bank of Scotland Group (NYSE:RBS) have completed their transaction, which involved Sempra and RBS selling their RBS Sempra Commodities joint venture to the giant financial institution.

The acquisition price was $1.6 billion, of which Sempra will get about $1 billion of.

Included in the deal was the global metals and oil businesses of RBS Sempra Commodities, along with European natural gas and power businesses.

Although some commodities have been under downward price pressure recently, they are expected to continue their upward run because of demand from emerging markets.

JPMorgan acquired the properties in anticipation of the commodity bull market continuing on for years into the future, even though there may be a temporary lull.

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