(Bloomberg) — BNP Paribas SA is exiting its commodities finance business in the US, following earlier retreats in other elements of the globe.
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“The choice taken to exit this enterprise was constant with our approach in EMEA,” the bank said in a statement in reaction to concerns. “The effect is limited, and BNP Paribas remains deeply dedicated to the US and Americas” as well as its vitality and renewables shoppers, it claimed.
BNP offered the e-book of financial loans to Mitsubishi UFJ Monetary Group Inc., according to people today with expertise of the situation. The Paris-primarily based financial institution advised shoppers and workers about the determination on Wednesday, explained the men and women, who requested not to be determined due to the fact the details was private. The sale includes commodities finance only and excludes its commodity derivatives platform, the men and women stated, declining to share money phrases of the offer or the quantity of impacted workforce.
Associates for BNP and MUFG declined to comment.
BNP — the moment a person of the greatest creditors to commodity traders — has been shrinking its publicity to funding commodities for some time. In 2014, it was fined just about $9 billion to solve accusations it violated US sanctions involving Iran, Cuba and Sudan. In 2020, it suspended new commodity trade finance specials in EMEA soon after racking up weighty losses. Past calendar year, BNP halted financing oil pumped from the Ecuadorian Amazon immediately after local climate activists criticized the lender and others for funding fossil fuels that add to local weather transform when advertising and marketing company accountability.
The sale to MUFG is envisioned to close in the up coming a few to 6 months, and some staff will be transferred to MUFG although other people will keep on being at BNP, a person of the folks explained.
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