Date
21 September 2017
Goldman Sachs has started the formal process to sell off its metal warehousing business. Photo: Bloomberg
Goldman Sachs has started the formal process to sell off its metal warehousing business. Photo: Bloomberg

Goldman offloads metals warehouses

Investment banker Goldman Sachs is sounding out bidders for its network of metals warehouses, four years after it bought the assets, Reuters reported Tuesday.

The sale of Metro International Trade Services comes as regulators review banks’ ownership of physical commodities and storage infrastructure and changes in delivery rules threaten to cut rental revenue for warehouse owners, according to the Financial Times.

Several Chinese buyers, including insurer Ping An and China Minmetals, were among those that signaled interest in buying the network last year, the newspaper said. But Reuters said it was not clear how many potential buyers had been contacted this time.

Metro has been a dependable source of income for Goldman but the US Federal Reserve fears direct bank investment in the supply chain could expose the lenders to “untold liability risk”, Reuters said.

 

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