Sector News

Shell buys Morgan Stanley’s Europe gas and power trade book

July 13, 2015
News
Royal Dutch Shell (RDSa.L) has acquired Morgan Stanley’s (MS.N) European gas and power trading book as the U.S. bank continues its exit from the sector.
 
Shell is set to significantly increase its footprint in the gas market in the coming years if it completes its proposed $70 billion acquisition of smaller British rival BG Group (BG.L) and as part of a growing strategic alliance with Russia’s Gazprom, the world’s top gas producer.
 
Shell Energy Europe, its supply and trading arm in the region, has signed a binding sales and purchase agreement for Morgan Stanley’s portfolio, the Anglo-Dutch company said on Friday, without providing further details.
 
The deal includes only Morgan’s trading book and no staff, according to several sources.
 
“Comprising predominantly physical and financial gas and power trades, the deal further expands Shell’s activities in core energy markets across Europe,” Shell said in a statement.
 
Morgan Stanley, once one of the most powerful Wall Street banks in commodities trading, has drastically reduced its exposure in the sector due to regulations limiting banks’ proprietary trading in markets such as oil or metals.
 
The bank has sold its oil trading business to Castleton after its deal with Russia’s Rosneft (ROSN.MM) collapsed due to Western sanctions on Russia. Morgan’s liquefied natural gas (LNG) team left for Glencore (GLEN.L).
 
Shell’s shares were up 1.4 percent at 0940 GMT (5:40 a.m. EDT), in line with the European oil and gas index .SXEP.
 
By Ron Busso (Additional reporting by Dmitry Zhdannikov; editing by David Clarke and William Hardy)

comments closed

Related News

August 23, 2019

The higher purpose of being a CEO

Borderless Leadership

LinkedIn Twitter Xing EmailWhen I left my second large company experience to become President of a small manufacturing company I did so driven by ego; I fancied the title. Soon […]

August 23, 2019

As Brexit nears, Britain’s drugs, devices and pricing regulators seek the exit

Life sciences

LinkedIn Twitter Xing EmailFirm details on exactly how the U.K. will regulate new medicines is still to be decided after it leaves the EU later this year (caveats on timing […]

August 23, 2019

The Simply Good Foods Company acquires Quest Nutrition for $1bn

Food & Drink

LinkedIn Twitter Xing EmailThe Simply Good Foods Company, the owner of Atkins-branded food products, has secured a deal to acquire protein snack maker Quest Nutrition for $1 billion. Quest, which […]

Send this to a friend