Societe Generale Corporate & Investment Banking has agreed to purchase certain North American power and natural gas assets from Royal Bank of Scotland (RBS) Sempra Commodities, a joint venture between RBS and Sempra Energy.
The transaction was executed between SG Energie, a wholly-owned subsidiary of Societe Generale, the Royal Bank of Scotland, Sempra Energy, RBS Sempra Commodities, Sempra Energy Trading.
The assets include an established IT platform from RBS Sempra. In addition, the French bank will also take more than 130 RBS Sempra employees into its existing commodity market activities, headed globally by Edouard Neviaski.
Societe Generale Americas CEO Diony Lebot said that with this new development of bank’s commodities business, the bank will be able to offer the full range of solutions to the North American clients in the energy sector.
The acquisition is also expected to enable Societe Generale to address client needs for price risk management, physical energy solutions, physical optimization, supply of physical gas and power and structured solutions.
Following this transaction, Jacqueline Mitchell and Michael Goldstein from RBS Sempra will act as co-CEOs of SG Energie, the newly integrated North American gas and power market activities, and will report to Gonzague Bataille, head of Commodity Markets in the Americas at Societe Generale Corporate & Investment Banking.
In Europe, the Societe Generale has executed the development of its natural gas and electricity market capabilities following the end of its partnership with GDF Suez in September 2010, through the joint-venture Gaselys.
Societe Generale also recruited nearly 50 employees to support these functions.
Societe Generale Corporate & Investment Banking CEO Michel Peretie said building on over 20 years of experience in the energy sector, the integration of the RBS Sempra Energy Trading business and the development in this sector in Europe, uniquely positions the bank to assist clients with tailor-made solutions combining financing and hedging expertise with new physical transaction capabilities.