Goldman Sachs Group Inc has sold its controversial metals warehousing business to Swiss private equity group Reuben Brothers, CNBC reported on Monday, citing a source familiar with the situation. The deal for Metro International Trade Services comes months after it put the business formally on the block. Goldman bought the business for an estimated $550 million in 2010, capitalizing on a surge in demand for storing base metals such as aluminum as demand slumped.But the bank came under fierce political and regulatory pressure to divest the Detroit-based operation amid allegations it had encouraged hoarding supply, inflating metals prices. Goldman has denied it did anything wrong.The deal is the latest in a string of commodity and energy market acquisitions by private equity groups, who are partly filling a void left by global banks that have been withdrawing from parts or even all of the volatile raw materials markets.
The Goldman Sachs Group, Inc. (Goldman Sachs), is a global investment banking, securities and investment management firm that provides a range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. Shares of GS traded higher by 0.22% or $0.43/share to $193.71. In the past year, the shares have traded as low as $151.65 and as high as $198.06. On average, 3087100 shares of GS exchange hands on a given day and today's volume is recorded at 1030413.
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