Sempra Energy of the US has bought the London-based metals trading arm of Enron for $145 million, subject to a final audit of the net assets. The deal is expected to be complete by Feb. 4. the metals trading group handles nonferrous metals such as aluminum, copper and lead.
The metals business has continued to operate independently of Enron on the LME since the parent company filed for bankruptcy protection last month. Trading revenues are currently running at an annual rate of more than $50 million.
Enron said the transaction did not include the refined metals, scrap metals or concentrates merchanting business or the metals warehousing division, which is expected to be sold at a later date. A spokesman for Sempra said the company does not have any plans at this time to acquire the scrap metal portion of Enron's business.
"This acquisition is strategic for our company because there are natural synergies between the energy and metals businesses - some of the largest energy users are metal producers," said David Messer, president of Sempra Energy Trading.
Upon closing of the transaction, Enron Metals Limited will be renamed Sempra Metals Limited and continue to be based in London.