December 30, 2013 [Reuters] - Morgan Stanley has sold the majority of its global physical oil trading operations to Russian state-run oil major Rosneft, becoming the latest Wall Street firm to dispose of a major part of its commodity business.
The deal includes more than 100 traders and shipping schedulers in London, New York and Singapore, over $1 billion worth of oil, and the bank’s 49 percent stake in tanker company Heidmar.
The terms of the deal were not disclosed. Morgan Stanley said it was not expected to have a significant impact on its financial results.
The purchase will not include Morgan Stanley’s oil storage, pipeline and terminalling firm, TransMontaigne Inc., which may help avoid significant scrutiny of the deal in Washington.
Morgan Stanley plans to submit the sale for review by the U.S. Committee on Foreign Investment (CFIUS), an inter-agency executive branch panel that examines foreign investment for potential threats to national security, a source familiar with the matter said.
The sale is also subject to regulatory approvals in the United States, the European Union and certain other jurisdictions, the bank said in a statement.
The bank said in the statement it is targeting the second half of next year to complete the deal.
