Occidental Petroleum to acquire Phibro from Citigroup

Tue. October 13, 2009; Posted: 05:05 AM

Oct 13, 2009 (Datamonitor via COMTEX) -- OXY | Quote | Chart | News | PowerRating -- Occidental Petroleum has signed an agreement to purchase Phibro, a US-based oil and gas trading firm, from Citigroup for approximately net asset value.

Occidental Petroleum has said that Phibro's assets consist of cash, marketable securities and readily saleable commodity positions. Phibro does not trade in any exotic derivatives or hold any level three type assets. Occidental's net investment in Phibro is expected to be about $250 million.

Phibro's management team, headed by Andrew Hall, and its employees will remain with the company after closing. The senior management team has agreed to make a significant investment in Phibro and receive returns dependent upon the company's future performance.

Additionally, significant portions of current and future bonuses will be deferred and retained by Phibro and paid out in future years. These future payouts will be adjusted to reflect Phibro's results during that period.

The transaction is expected to close by the end of 2009. Upon closing, Occidental will support the credit of Phibro. Phibro will become a part of Occidental's midstream segment which includes Occidental's natural gas liquids, power, pipeline and existing trading business.

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For full details on Occidental Petro Cp (OXY) click here. Occidental Petro Cp (OXY) has Short Term PowerRatings of 5. Details on Occidental Petro Cp (OXY) Short Term PowerRatings is available at This Link.

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