The Royal Bank of Scotland Group PLC informed on Tuesday that joint-venture commodities unit RBS Sempra Commodities has decided to sell off its metals, oil and European energy businesses to J. P. Morgan Chase Co., an investment bank for $1.7 billion. RBS, almost 84% owned by British Government, said that it will get 47% of the sale price with a very less gain on the deal.

Sempra Energy expected its share of the sale proceeds is expected to be about $940 million when it later confirmed its participation. North American pieces of Connecticut-based RBS Sempra Commodities, which trades natural gas, petroleum, metals and other commodities, have not been included in the deal leaving these assets for sale.

Bruce Van Saun, RBS Group Finance Director said, "We believe we have struck a fair price and contract with J. P. Morgan. The remaining assets in RBSSC, namely the North American Power and Gas businesses, remain of high value and are performing well. Along with our JV partner, Sempra Energy, we continue to actively consider various ownership alternatives for the remainder of RBSSC".

Bids for January for all of RBS Sempra Bidders that came in at more than $4 encompass Deutsche Bank AG and Australia's Macquarie Group Ltd. For a 51% stake in the business, In April 2008, RBS paid $1.7 billion.