JPMorgan in rethink over move for RBS Sempra

JPMorgan Chase is rethinking its purchase of RBS Sempra and could pick up only the joint venture's oil operations and all of the non-US businesses, a source said.
By The Newsroom
Published 2nd Feb 2010, 11:48 BST
Updated 2nd Feb 2010, 11:48 BST

The US power and gas businesses might be sold to Sempra Energy, the source said, which jointly owns RBS Sem- pra with Royal Bank of Scot-land.

JPMorgan has been in exclusive talks to buy all of RBS Sempra for about $4bn (2.5bn), but the United States' plans to stop proprietary trading by banks have prompted it to rethink its plans.

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The plans by US President Barack Obama should not derail the deal to buy RBS Sempra's oil operations and all businesses outside the US, several sources have said.

The European Union is forcing RBS to sell its 51 per cent stake in RBS Sempra.

Sempra Energy had been in talks to sell its 49 per cent as part of the deal, but may now take full control of the US power and gas assets.

RBS Sempra's chief executive Kaushik Amin resigned on Friday, and had been replaced by co-chief executives Mike Beck and Michael Goldstein.

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The interim chief executives had updated senior management on the progress of talks over the weekend, but gave no reason why Amin had left, one of the sources said.

An RBS spokesman said "constructive discussions" regarding the sale of RBS Sempra were still under way.

JPMorgan declined to comment.

Related topics:European Union