Sempra Energy: RBS May Have To Divest Share Of Commodities JV
By Cassandra Sweet, Of DOW JONES NEWSWIRES
SAN FRANCISCO -(Dow Jones)- Sempra Energy (SRE) said Monday that its partner
in a commodities joint venture, Royal Bank of Scotland Group Plc (RBS) has said
it may have to sell its interest in the enterprise.
"We have been informed by leadership of the Royal Bank of Scotland that RBS
may have to divest its interest in the RBS Sempra Commodities joint venture,"
the company said in a statement.
Sempra, of San Diego, Calif., said its agreement with RBS requires the bank to
keep its ownership of the 50-50 joint venture through April 2012. Any order from
the European Commission requiring the bank to sell its share of the commodities
unit would likely "allow for an orderly transition," Sempra said. The company
added that its agreement with RBS gives the California company the right to buy
RBS' share of the joint venture.
"After discussions with RBS, we are confident that RBS is committed to
continuing the capital and credit support for the joint venture going forward,"
Sempra concluded.
Sempra, which owns San Diego electric and natural gas utilities, as well as
U.S. natural gas pipelines, storage facilities and liquefied natural gas
terminals, said its statement was preceded by a news report that RBS may divest
its stake in the commodities joint venture.
Shares of Sempra were recently trading 3.6% lower at $49.62; shares of RBS in
New York were trading 9% lower at about $12.39 apiece.
-By Cassandra Sweet, Dow Jones Newswires; 415-439-6468; cassandra.sweet@
dowjones.com
(END) Dow Jones Newswires
11-02-091334ET
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