Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.
Morgan Stanley has reportedly been offered $1 billion for its oil trading business
Morgan Stanley has reportedly been offered $1 billion for its oil trading business
Akin OyedeleApr 15, 2015, 17:28 IST
Morgan Stanley is trying to sell its merchant oil trading business.Trading house Castleton Commodities International has offered $1 billion for it, according to the Financial Times, which cites a person familiar with the matter. Castleton is backed by hedge fund manager Paul Tudor Jones and Glenn Dubin.Russian state-owned oil company Rosneft had tried to Morgan Stanley's oil trading unit, but abandoned the deal in December because of US sanctions on Russia over the Ukraine crisis. The sale would include contracts and inventories, the FT reported. As oil and other commodity prices continue to slide, Wall Street banks have been scaling back trading. And following the financial crisis, new regulations ban the banks from owning global commodities businesses.Earlier this month, Morgan Stanley agreed to spin off its natural gas business to a newly formed company called Pentagon Energy LLC.Selling the oil business this year is a priority for Morgan Stanley CEO James Gorman, according to the Wall Street Journal. Head over to the FT for the full story »
