M&A

2 November, 2009

UPDATE 1-Sempra says RBS may divest stake in commodities JV

* Says JV deal requires RBS to hold stake through April '12

* Says RBS may continue capital and credit support

Nov 2 (Reuters) - Utility company Sempra Energy (SRE.N) said the Royal Bank of Scotland (RBS) (RBS.L) may divest its stake in their joint commodities trading venture RBS Sempra Commodities.

"Our agreement with RBS requires that the bank maintain its ownership of the joint venture through April 2012," Sempra Chief Executive Donald Felsinger said in a statement.

Sempra said it expects any forthcoming divestiture order from the European Commission to allow for an orderly transition and comply with the joint venture agreement.

The company said it is confident that RBS will continue to provide capital and credit support for the joint venture going forward.

The agreement gives Sempra certain rights with respect to any new owner of RBS' share of the joint venture and also the right to reacquire RBS' share, the CEO added.

Shares of San Diego-based Sempra were down 4 percent at $49.49 in Monday afternoon trade on the New York Stock Exchange. (Reporting by Arundhati Ramanathan in Bangalore; Editing by Pradeep Kurup)

Source: http://www.reuters.com