Indiana Grain Company, LLC

Posted: 02/16/10

By: tomgrisafi

The United States second biggest lender, JP Morgan Chase, has said to have made a deal to purchase the non-U.S components of RBS Sempra Commodities. The acquisition is geared towards expanding JPMorgan's energy and metals trading units.

After receiving a substantial 45.5 billion-pound bailout, paid for by taxpayers, The European Union forced RBS to sell its stake in Sempra.

“This transaction maximizes the market value of our European and Asian businesses and represents a positive first step of an orderly exit by RBS from the joint venture,” says Donald E. Felsinger, chairman and CEO of Sempra Energy in a statement today.

Per JPMorgan CEO Jes Staley, the acquisition will almost double the amount of corporate clients the banks commodities franchise can serve. It will also allow them to offer more products in more parts of the world.

In 2008 JP Morgan purchased Bear Stearn's energy business and also UBS AG's global agricultural and Canadian commodities division. Also in 2008, JPMorgan acquired U.K based ClimateCare.

The transaction must be approved not only from the U.K Financial Services Authority, but also from the Swiss Government and various antitrust regulators. Under the Hart-Scott-Rodino Act, the acquisition must also be approved by the U.S. The transaction is expected to be complete mid-2010.

Source: Bloomberg