Castleton Commodities to Acquire Morgan Stanley’s Physical Oil Business
Stamford-based Castleton Commodities International LLC will acquire the physical oil business of Morgan Stanley. The price of Morgan Stanley’s oil trading and storage unit was rumored to be around US$ 1 billion to US$ 1.5 billion in an all-cash purchase. Trading house Castleton Commodities raised funds from existing company investors and through a US$ 3.5 billion credit facility from BNP Paribas. The deal is expected to close in the second half of 2015.
Morgan Stanley’s CEO James Gorman was keen on selling the oil business. The Federal Reserve is looking to enact tougher regulations on banks that trade commodities.
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