Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
  1. Homepage
  2. Equities
  3. Canada
  4. Toronto Stock Exchange
  5. The Bank of Nova Scotia
  6. News
  7. Summary
    BNS   CA0641491075


SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Goldman Sachs among bidders for Scotiabank's metals unit: sources

11/28/2017 | 12:37pm EDT
FILE PHOTO: The logo of Goldman Sachs is displayed in their office located in Sydney, Australia

LONDON (Reuters) - Goldman Sachs Group (>> Goldman Sachs Group) is among around five bidders for ScotiaMocatta, the metals trading arm of Canada's Bank of Nova Scotia (>> Bank of Nova Scotia), for which it is seeking up to $1 billion, sources with knowledge of the matter told Reuters.

LONDON (Reuters) - Goldman Sachs Group (>> Goldman Sachs Group) is among around five bidders for ScotiaMocatta, the metals trading arm of Canada's Bank of Nova Scotia (>> Bank of Nova Scotia), for which it is seeking up to $1 billion, sources with knowledge of the matter told Reuters.

Scotiabank began a review of its ScotiaMocatta metals business in 2016 following a string of lawsuits related to the manipulation of gold and silver price benchmarks and due to dissatisfaction over its performance, sources said.

It has since hired JPMorgan in New York to help with the sale process, with the aim of completion before the end of March 2018, they added.

The bulk of ScotiaMocatta's business is in precious metals and it is one of five banks that clear bullion in London's $5 trillion a year gold market, the world's biggest.

Goldman Sachs has been seeking to turn around its struggling commodities unit by hiring a number of executives after reporting the weakest commodities results in its history as a public company in the second quarter.

Goldman and four other banks were part of a group that invested several million dollars in designing and building gold and silver contracts launched by the London Metal Exchange in July.

Three sources said Goldman had put in a non-binding bid for Scotiabank's metals unit at an auction in mid-November.

"Taking the opposite approach to any other bank, which would scale back after a tough 18 months period ... Goldman is keen across all the commodity business to expand their physical franchise and wants to be aggressive on market share and pricing to expand their position," one of the sources said.

Two of the sources said other bidders included Japanese trading house Sumitomo (>> Sumitomo Corp) and Australian bank ANZ (Australia and New Zealand Banking Group) (>> Australia and New Zealand Banking Group). The unit also attracted the interest of two Chinese banks, they said.

Scotiabank, Goldman and ANZ declined to comment. Sumitomo was not immediately available to comment.

ScotiaMocatta is one of London's main gold trading banks with a history dating back to the 17th century. It was acquired by Scotiabank from Standard Chartered (>> Standard Chartered) in 1997 and employs more than 160 people in 10 offices around the world, according to its website.

Market sources put Scotiabank's annual revenues from the precious metals unit at $100-$180 million with operating margins of around 25 percent.

Sources said Scotiabank was seeking up to $1 billion for ScotiaMocatta.

"A factor in the discussions is whether the buyer gets an indemnity for legal risks as Scotia still has litigation hanging over them," one source said.

"The purchase price will be affected by whether the buyer assumes that risk or they manage to ring-fence it or leave it with Scotia," the source added.

U.S. investors sued Scotiabank alongside other four banks in 2014, claiming that they conspired to fix gold prices from 2004 to 2013,

A separate suit was pursued by silver investors against banks including Scotiabank.

Deutsche Bank (>> Deutsche Bank) agreed to pay a combined $98 million settlement on both suits.

The cases are only some of the lawsuits in which investors accused banks of conspiring to rig rates and prices in financial and commodities markets following revelations in 2012 that the London Interbank Offered Rate (Libor) had been rigged by British banks.

(Additional reporting by Pratima Desai in London, John Tilak and Matt Scuffham in Toronto and Osamu Tsukimori in Tokyo; Editing by Veronica Brown and David Evans)

By Peter Hobson and Clara Denina

ę Reuters 2017
Stocks mentioned in the article
ChangeLast1st jan.
DEERE & COMPANY -0.55% 353.52 Delayed Quote.32.12%
DEUTSCHE BANK AG 3.20% 10.962 Delayed Quote.18.67%
GOLD 0.30% 1804.83 Delayed Quote.-5.29%
JUST GROUP PLC 0.81% 99 Delayed Quote.40.49%
SILVER 0.49% 24.832 Delayed Quote.-4.48%
STANDARD CHARTERED PLC -0.72% 430 Delayed Quote.-7.21%
SUMITOMO CORPORATION -0.40% 1480 End-of-day quote.8.39%
THE BANK OF NOVA SCOTIA -0.10% 77.89 Delayed Quote.13.21%
THE GOLDMAN SACHS GROUP, INC. -0.28% 374.84 Delayed Quote.42.14%
07/27THE BANK OF NOVA SCOTIA(TSX : BNS.PRG) dropped from S&P/TSX Preferred Share Inde..
07/26BANK OF NOVA SCOTIA : Primary Offering Prospectus (SEC Filing - 424B2)
07/23BANK OF NOVA SCOTIA : Scotiabank Revising Its Forecasts Up
07/23BANK OF NOVA SCOTIA : BMO Economics Sees Headline Inflation Taking a "Small Step..
07/23SCOTIABANK NOWCAST : Retail Sales, Stronger Early June Data Pull Q2 2021 Up to 2..
07/23BANK OF NOVA SCOTIA : Scotiabank applauds Government of Canada's efforts to safe..
07/23Credit Suisse on Canadian Banks Read-Throughs From Q2-21 U.S. Bank Earnings
07/23BANK OF NOVA SCOTIA : Scotia Global Asset Management announces July 2021 cash di..
07/22BANK OF MONTREAL : Banks, business websites up again after reporting technical d..
07/21CANADA BANKS BRIEF : Nigel D'Sousa of Veritas Adds Scotia Won't Perform Badly, B..
More news
Sales 2021 31 648 M 25 135 M 25 135 M
Net income 2021 9 153 M 7 269 M 7 269 M
Net Debt 2021 - - -
P/E ratio 2021 10,3x
Yield 2021 4,63%
Capitalization 94 616 M 75 312 M 75 144 M
Capi. / Sales 2021 2,99x
Capi. / Sales 2022 2,88x
Nbr of Employees 89 847
Free-Float 99,8%
Duration : Period :
The Bank of Nova Scotia Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends THE BANK OF NOVA SCOTIA
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 14
Last Close Price 77,89 CAD
Average target price 87,00 CAD
Spread / Average Target 11,7%
EPS Revisions
Managers and Directors
Brian Johnston Porter President, CEO & Non-Independent Director
Rajagopal Viswanathan Chief Financial Officer & Executive Vice President
Aaron William Regent Chairman
Michael Zerbs Group Head-Technology & Operations
Ashley Veasey Global CIO-Business Technology & Executive VP
Sector and Competitors