Weeks of speculation about what may or may not happen to Phibro, Citigroup’s energy trading arm, and finally some cold hard facts. A company release confirms Occidental Petroleum is buying out Phibro – and the trading unit’s controversial boss Andrew Hall is included in the deal.
Via Reuters, emphasis FT Alphaville’s:
RTRS-OCCIDENTAL PETROLEUM ANNOUNCES ACQUISITION OF PHIBRO
RTRS-OCCIDENTAL PETROLEUM CORP SAYS OCCIDENTAL’S NET INVESTMENT IN PHIBRO IS EXPECTED TO BE ABOUT $250 MILLION.
RTRS-OCCIDENTAL PETROLEUM -AGREEMENT TO PURCHASE PHIBRO LLC FROM CITIGROUP INC., FOR APPROXIMATELY NET ASSET VALUE
RTRS-OCCIDENTAL PETROLEUM CORP SAYS TRANSACTION IS EXPECTED TO CLOSE BY YEAR END RTRS-OCCIDENTAL SAYS SIGNED AN AGREEMENT TO PURCHASE PHIBRO LLC FROM CITIGROUP INC
RTRS-OCCIDENTAL SAYS PHIBRO’S MANAGEMENT TEAM, HEADED BY ANDREW HALL, AND ITS EMPLOYEES WILL REMAIN WITH THE COMPANY AFTER CLOSING
As for the matter of those important bonuses:
RTRS-OCCIDENTAL SAYS SIGNIFICANT PORTIONS OF CURRENT, FUTURE BONUSES TO BE DEFERRED, RETAINED BY PHIBRO AND PAID OUT IN FUTURE YEARS
RTRS-OCCIDENTAL SAYS FUTURE PAYOUTS WILL BE ADJUSTED TO REFLECT PHIBRO’S RESULTS DURING THAT PERIOD
According to the release Occidental’s net investment in Phibro will be about $250m.
The full statement is available here.
Related links:
Citi eyes commodities unit sell-off – FT
Citigroup can’t keep Phibro – Felix Salmon / Reuters