JP Morgan likely to acquire RBS Sempra units excluding U.S.

JP MorganJP Morgan has recently dropped the idea to buy RBS Sempra, the American division of RBS and a joint venture between Royal Bank of Scotland and Sempra Energy.

This decision is seemed to be taken as the reaction of President Barack Obama’s proposal to ban banks from engaging in proprietary trading. The bank is refusing to buy the U. S. gas and power activities because of President Barack Obama’s plans to curb proprietary trading.

In contrast JPMorgan Chase & Co. may now acquire some of Royal Bank of Scotland Group Plc’s Sempra Commodities stake while excluding its U. S. activities.

JPMorgan would buy RBS’s interests in Sempra Commodities’ European operations and international oil-trading business under a revised deal. RBS Sempra’s European operations and its global oil trading group together account for about 50 per cent of the business.

RBS Sempra’s U. S. division may now be put up for sale separately. JPMorgan and Royal Bank of Scotland are now discussing a deal under which RBS would sell its 51 percent stake in RBS Sempra’s U. S. operation back to Sempra Energy. Sempra Energy, RBS’s partner which owns the other 49 percent of Sempra Commodities, may agree to buy the RBS holding in the U. S. business activities.