Sempra Energy (NYSE:SRE) and The Royal Bank of Scotland (NYSE:RBS) announced they've sold their Sempra Energy Solutions to Noble Group for the assumption of debt $265 million in and $317 million in cash.
The Sempra Energy Solutions unit was the retail commodity marketing arm of the joint venture between the two companies.
RBS-Sempra Commodities sold their global metals and oil business to JPMorgan Chase (NYSE:JPM) in July, along with its European natural gas and power business, which was the first step in the sale of assets by the joint venture.
RBS and Sempra said their final asset sale of the joint venture, the North American wholesale power and natural gas business, is in the latter part of negotiations.
The deal with Noble should close sometime in the fourth quarter.
RBS as been required to sell some of its assets in response to antitrust concerns in the European Union.
Showing posts with label RBS Sempra Commodities. Show all posts
Showing posts with label RBS Sempra Commodities. Show all posts
Tuesday, September 21, 2010
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.
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.
Tuesday, February 2, 2010
JPMorgan (NYSE:JPM) Changing Strategy in RBS Sempra Commodities
JPMorgan (NYSE:JPM) RBS Sempra Commodities
JPMorgan Chase (NYSE:JPM) may have to change its strategy concerning the acquisition of RBS Sempra commodity investment company, as the announcement by Obama that he wants to restrict proprietary investing at banks in America would keep the deal from having value in some of the units of RBS Sempra, which do in fact involve proprietary trades.
A proprietary trade refers to a trade done with the money of the company rather than money of investors.
Even so, word is JPMorgan is still in negotiations concerning the global oil business of RBS Sempra, as well as all the other assets it holds outside of North America. Sempra Energy is now looking at acquiring the North American gas and power businesses of RBS Sempra.
Originally JPMorgan had wanted to acquire all of RBS Sempra for a reported $4 billion, but again, that has changed since the Obama initiative. Sempra at this time has a 49 percent stake in RBS Sempra. The Royal Bank of Scotland has the majority share of 51 percent in the company.
The power and gas business in North America isn't that valuable to JPMorgan, as it already has a strong presence there, so in a way it wouldn't hurt the company much - if at all - if it doesn't get it. That's because of the acquisition of Bear Stearns by JPMorgan, which came with it; including power plants and gas pipelines in America and Canada.'
The Royal Bank of Scotland is being forced to sell its majority share in RBS Sempra in order to qualify for bailout funds by the European Union.
JPMorgan (NYSE:JPM) RBS Sempra Commodities
JPMorgan Chase (NYSE:JPM) may have to change its strategy concerning the acquisition of RBS Sempra commodity investment company, as the announcement by Obama that he wants to restrict proprietary investing at banks in America would keep the deal from having value in some of the units of RBS Sempra, which do in fact involve proprietary trades.
A proprietary trade refers to a trade done with the money of the company rather than money of investors.
Even so, word is JPMorgan is still in negotiations concerning the global oil business of RBS Sempra, as well as all the other assets it holds outside of North America. Sempra Energy is now looking at acquiring the North American gas and power businesses of RBS Sempra.
Originally JPMorgan had wanted to acquire all of RBS Sempra for a reported $4 billion, but again, that has changed since the Obama initiative. Sempra at this time has a 49 percent stake in RBS Sempra. The Royal Bank of Scotland has the majority share of 51 percent in the company.
The power and gas business in North America isn't that valuable to JPMorgan, as it already has a strong presence there, so in a way it wouldn't hurt the company much - if at all - if it doesn't get it. That's because of the acquisition of Bear Stearns by JPMorgan, which came with it; including power plants and gas pipelines in America and Canada.'
The Royal Bank of Scotland is being forced to sell its majority share in RBS Sempra in order to qualify for bailout funds by the European Union.
JPMorgan (NYSE:JPM) RBS Sempra Commodities
Thursday, January 21, 2010
J.P. Morgan Bidding for RBS Sempra Commodities
J.P. Morgan Bidding for RBS Sempra Commodities
In a bid to become of the the top commodity trading firms in the world, J.P. Morgan Chase (NYSE:JPM) is in direct and exclusive talks with Royal Bank of Scotland Group (RBS.LN) to acquire its commodity unit RBS Sempra Commodities.
One of the conditions for RBS to receive billions in aid from the government was it was ordered by the European Union to divest of its 51 percent stake in RBS Sempra Commodities. The company is a joint venture between Sempra Energy (SRE), based in the U.S., and RBS. The British government owns 84 percent of RBS.
The exclusivity of the deal comes after bids from Deutsche Bank AG and Australia's Macquarie Group Ltd. were submitted, and J.P. Morgan evidently made the best offer.
Assuming the deal goes through, the 49 percent stake held by Sempra would be part of the deal, and J.P. Morgan would own the entire company. Lazard Ltd. is handling the sale on behalf of Sempra.
People familiar with the deal said the bids coming in were at about $4 billion, which is only a slight premium over book value.
The original investment on the part of RBS in the joint venture was $1.7 billion, while Sempra Energy invested $1.6 billion in the newly created business at the time it was launched. If there was any funding needed for the businesses, RBS was the one providing it, although it's not clear that's going to be the practice going forward, and more than likely won't be.
The ability to tap into financing by Sempra Energy at the beginning of the business from RBS was one of the key elements to creating RBS Sempra Commodities in the first place. Obviously J.P. Morgan can provide financing, and that's big plus for them on top of the rest of the company's assets and strengths.
On the part of RBS, they were looking to gain access in trading markets in relationship to precious metals and energy.
Other companies like Henry Bath & Son and Sempra Metals and Concentrates Corp. are included in the deal as well, along with the energy trading division of Sempra too.
If J.P. Morgan lands the deal, which they are performing due diligence over at this time, it could be a great boost for them, as commodities are expected to perform well not only in 2010, but possibly for the rest of the decade following.
J.P. Morgan Bidding for RBS Sempra Commodities
In a bid to become of the the top commodity trading firms in the world, J.P. Morgan Chase (NYSE:JPM) is in direct and exclusive talks with Royal Bank of Scotland Group (RBS.LN) to acquire its commodity unit RBS Sempra Commodities.
One of the conditions for RBS to receive billions in aid from the government was it was ordered by the European Union to divest of its 51 percent stake in RBS Sempra Commodities. The company is a joint venture between Sempra Energy (SRE), based in the U.S., and RBS. The British government owns 84 percent of RBS.
The exclusivity of the deal comes after bids from Deutsche Bank AG and Australia's Macquarie Group Ltd. were submitted, and J.P. Morgan evidently made the best offer.
Assuming the deal goes through, the 49 percent stake held by Sempra would be part of the deal, and J.P. Morgan would own the entire company. Lazard Ltd. is handling the sale on behalf of Sempra.
People familiar with the deal said the bids coming in were at about $4 billion, which is only a slight premium over book value.
The original investment on the part of RBS in the joint venture was $1.7 billion, while Sempra Energy invested $1.6 billion in the newly created business at the time it was launched. If there was any funding needed for the businesses, RBS was the one providing it, although it's not clear that's going to be the practice going forward, and more than likely won't be.
The ability to tap into financing by Sempra Energy at the beginning of the business from RBS was one of the key elements to creating RBS Sempra Commodities in the first place. Obviously J.P. Morgan can provide financing, and that's big plus for them on top of the rest of the company's assets and strengths.
On the part of RBS, they were looking to gain access in trading markets in relationship to precious metals and energy.
Other companies like Henry Bath & Son and Sempra Metals and Concentrates Corp. are included in the deal as well, along with the energy trading division of Sempra too.
If J.P. Morgan lands the deal, which they are performing due diligence over at this time, it could be a great boost for them, as commodities are expected to perform well not only in 2010, but possibly for the rest of the decade following.
J.P. Morgan Bidding for RBS Sempra Commodities
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