Trafigura says has no plans to sell warehousing unit

LONDON Tue Dec 10, 2013 10:33am EST

LONDON Dec 10 (Reuters) - Commodity trader Trafigura said it had no plans to sell its warehouse operations, responding to speculation it wanted to spin off the business after the London Metal Exchange (LME) tightened regulations to reduce backlogs in the sector.

Trafigura bought warehousing company North European Marine Services (NEMS) in 2010 and later consolidated all of its warehousing and logistics activities into its subsidiary Impala.

Industry sources said talk had recently circulated that NEMS was up for sale. JPMorgan Chase & Co has been trying to sell its Henry Bath metals warehousing unit but has not found a buyer.

"I can confirm that is absolutely not the case," Trafigura spokeswoman Victoria Dix said on Tuesday. "NEMS is not for sale, and it remains a wholly owned part of the Impala group."

Last month, a source close to the matter said Goldman Sachs planned to resume talks with parties interested in buying its warehousing business, Metro International Trading Services. (Reporting by Eric Onstad; editing by Jane Baird)

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