RBS Sempra auction down to three suitors - source

LONDON Dec 21 (Reuters) - Deutsche Bank, JPMorgan Chase and Australia's Macquarie are the remaining runners in the race to buy RBS Sempra, the joint venture commodities trading business that is up for sale, a person familiar with the matter said.

A deal likely to be worth around $3 billion or more, if agreed, would likely be struck early next year, the source said on Monday, adding initial interest from about 20 firms has been whittled down.

RBS Sempra, which trades commodities from oil and natural gas to metals and agricultural products, would offer entry into a lucrative market with a diverse global trading book, or a chance for a bank to significantly bulk up in commodities.

Deutsche Bank (DBKGn.DE) is in talks to buy RBS Sempra as part of plans to strengthen its commodities business, several sources told Reuters last week. [ID:nLDE5BG0T9]

It faces competition from JP Morgan (JPM.N), the U.S. bank that has picked up assets and market share after weathering the financial crisis better than most rivals, and Australian group Macquarie (MQG.AX), which operates in 28 countries and is already active in commodities.

Royal Bank of Scotland (RBS.L), Deutsche Bank, JPMorgan and Macquarie all declined to comment. Lazard (LAZ.N), which is advising on the sale, also declined comment.

RBS -- majority-owned by the British government -- is being forced to sell its 51 percent interest in RBS Sempra by European competition authorities due to the bailouts it has been given by Britain. Its partner Sempra Energy (SRE.N) is also considering selling its stake, sources have told Reuters. [ID:nNGEE5B815]

RBS paid $1.7 billion for its stake in April 2008 and Sempra Energy invested $1.6 billion.

RBS has four years to sell its stake, but is attempting to sell it more quickly than other assets such as its insurance arm or British retail branches, as the business would lose value if staff leave or uncertainty about the business persisted.

Deutsche said last week it wanted to expand in commodities and aimed to be among the top five commodities firms, improving on its No. 6 position.

Macquarie has more than 12,700 staff and has been active in Europe since the late 1980s. Its fixed income, currencies and commodities arm provides services to financial institutions and significant commodity producers and consumers and operates in most major trading markets and emerging markets around the world, according to its website.

For a history of RBS Sempra Commodities click on [ID:nN09168115]

(Reporting by Steve Slater; additional reporting by Mike Shields in Frankfurt)