JP Morgan latest to trade raw
(18 February 2010 – USA) JP Morgan will acquire the European and Asian operations of RBS Sempra Commodities for US$1.7 billion (A$1.89 billion).
The energy-trading business, owned by RBS and Sempra Energy, has confirmed the sale of its global oil unit, profitable metal trading business, coal operations, and freight, power and gas units in Europe and Asia to the investment bank.
However, has said it will retain its United States natural gas and power operations.
The investment bank initially said that it considered purchasing the whole venture for around US$4 billion, but decided against the move to avoid overlapping between the remaining units and its existing businesses.
Blythe Masters, head of global commodities at JP Morgan in New York, said the transaction would make the bank a true global leader in commodities, with the number of corporate customers almost doubling overnight.
In terms of capability, JP Morgan is now as good as anyone, Ms Masters told the Financial Times.
However, has said it will retain its United States natural gas and power operations.
The investment bank initially said that it considered purchasing the whole venture for around US$4 billion, but decided against the move to avoid overlapping between the remaining units and its existing businesses.
Blythe Masters, head of global commodities at JP Morgan in New York, said the transaction would make the bank a true global leader in commodities, with the number of corporate customers almost doubling overnight.
In terms of capability, JP Morgan is now as good as anyone, Ms Masters told the Financial Times.
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