Goldman Sachs Group has sold its metals warehousing business Metro International Trade Services to private equity group Reuben Brothers, after the business was scrutinised by the US Congress.
According to Swiss company Reuben Brothers, which has acquired the metals storage business, the Metro International Trade Services has withheld metal supplies and increased aluminium prices in the US.
The latest sale comes in the midst of plans by the US Federal Reserve to go ahead with a regulation that could bind banks’ capability to deal with physical commodities, such as oil and natural gas.
In November, executives from Goldman confirmed before a Senate subcommittee on the issue, and reiterated the company’s intent to put up for sale the metals warehousing unit.
Metro, which comprises of nearly 30% Detroit warehouses, was acquired by Goldman for $550m in 2010.
Reuters reported that Goldman has been planning to sell the Metro business within ten years from the time of its acquisition.
International buyers also bid for the acquisition of Metro, including Chinese companies, but the eventual bid from Reuben Brothers succeeded.
Financial terms of the sale have not been disclosed.