JPMorgan Chase leads the field in RBS Sempra sale

by Gill Montia

JPMorgan Chase is reported to be in exclusive talks to buy RBS Sempra.

The joint venture commodities unit was taken on board by Royal Bank of Scotland (RBS) as part of the ABN Amro acquisition, and is estimated to be worth around $4 billion.

It trades commodities such as natural gas, petroleum and petroleum products, coal, emissions, ethanol and base metals.

RBS has put its stake up for sale because it is being forced to shed assets to comply with EU competition rules.

Deutsche Bank and Australia’s Macquarie are known to be interested in acquiring the business but according to a report by Reuters, JPMorgan could be willing to pay a higher price for the firm, which RBS owns jointly with Sempra Energy of the US.

Earlier this week, JPMorgan Chase reported net profit of $3.3 billion for the final quarter of 2009, compared with $702 million a year earlier.

The result, which benefited from a surge in profitability at the group’s investment banking business, brought annual earnings close to $12 billion.

Source: http://www.bankingtimes.co.uk/21012010-jpmorgan-chase-leads-the-field-in-rbs-sempra-sale/