The FINANCIAL — The Royal Bank of Scotland Group plc (RBS) on September 20 announces that RBS Sempra Commodities (RBSSC), its Joint Venture (JV) with Sempra Energy, has agreed to sell its Sempra Energy Solutions business line to Noble Americas Gas and Power Corp (Noble).
According to RBS, the transaction will see Noble acquire this business for consideration of approximately US$317m in cash, plus the assumption of approximately US$260m in debt. RBS's partnership allocation under the JV is approximately 51%, or US$162m. Completion of the transaction is subject to certain conditions including US regulatory approvals.
Based in San Diego, Sempra Energy Solutions is the North American retail commodity marketing arm of RBS Sempra Commodities. With approximately 200 employees, Sempra Energy Solutions markets energy solutions to commercial, industrial and municipal customers in 16 states.
Bruce Van Saun, RBS Group Finance Director, said: "The sale of the Sempra Energy Solutions business line out of our JV with Sempra Energy represents another step in divestiture of this asset as agreed with the European Commission. Noble represents a strong strategic fit and a good home for this business. We expect to close this transaction during the fourth quarter, and during this process, current clients of this business will continue to be supported with the same high level of service they have come to expect from us."
Along with our JV partner, Sempra Energy, an active sales process continues for RBSSC's remaining North American Power and Gas business lines. Clients of this business continue to be fully supported by RBSSC.
The financial results of RBS's ownership in RBSSC have been reported within our Non-Core division.