UPDATE: JP Morgan To Close RBS Sempra Deal July 1 - Source

24th Jun 2010 16:15

(Adds details.) By Andrea Hotter Of DOW JONES NEWSWIRES LONDON (Dow Jones)--JPMorgan Chase & Co.'s (JPM) acquisition of the European and Asian parts of RBS Sempra Commodities is scheduled to close July 1, people familiar with the matter said Thursday. The $1.7 billion deal, formally announced in February, will see JP Morgan buy the Royal Bank of Scotland PLC's (RBS) 51% stake in the business, a joint venture between RBS and Sempra Energy (SRE). Although an unexpected technicality or issue could delay the formal closure date, July 1 remains the targeted deadline, the persons said, and comes after several months of discussions between the various parties to firm up details and tie-up loose ends. The deal, which received European Commission approval last week, includes the European energy assets and the metals and oils businesses in Europe and Asia. It doesn't include the North American parts of the Connecticut-based business, which trades natural gas, petroleum, metals and other commodities. These assets remain for sale, with San Diego-based Sempra a potential buyer. Sempra expects to receive $2 billion or more from the sale of its entire stake in the venture. JPMorgan said that the assets, which will be integrated into the bank's existing global commodities business, will be purchased for cash, all payable at closing. They are expected to contribute a profit immediately upon closing, the bank has said. Th assets were put up for sale after the European Union told RBS it must sell its stake in the commodities-trading joint venture as a condition of taking billions in state aid. RBS paid $1.7 billion for its 51% stake in the business in April 2008. Bids in January for all of RBS Sempra came in at more than $4 billion. Bidders included Deutsche Bank AG (DB) and Australia's Macquarie Group Ltd. (MQBKY) who could now return to bid for the North American business. JP Morgan was unavailable for comment. -By Andrea Hotter, Dow Jones Newswires; +44 (0)20 7842 9413; [email protected] (END) Dow Jones Newswires June 24, 2010 11:15 ET (15:15 GMT)