RBS to sell energy division

Royal Bank of Scotland yesterday announced the sale of its metals, oils and European energy business for £1bn as it looks to meet EU demands following its multi-billion pound state bail-out.

By The Newsroom

Published 16th Feb 2010, 19:43 BST

Updated 16th Feb 2010, 19:43 BST

RBS will have a 47 per cent share of the proceeds from the sale of the commodities trading business, which it owns with Sempra Energy.

The deal with JP Morgan for RBS Sempra Commodities – which does not include its North American power and gas businesses – is the latest sell-off for RBS as it looks to comply with European competition rules after a series of state bailouts saw the taxpayer stake in the bank rise to 84 per cent.

Other disposals are set to include RBS-branded branches in England and Wales, its NatWest branches in Scotland, the Churchill and Direct Line insurance arm and parts of its investment banking business.

Yesterday RBS said the sale was subject to regulatory approvals.