Citigroup selling Phibro to Occidental

Citigroup selling Phibro to Occidental

New York: Occidental Petroleum Corp said on Friday it had struck a deal to buy Citigroup Inc’s commodities trading unit Phibro for roughly its net asset value.

Occidental, an oil and gas exploration and production company, said its net investment in Phibro would be about $250 million.

Phibro’s management team, headed by Andrew Hall, and its employees will remain with the company after closing, expected by year-end.

Phibro has been a subject of controversy because of Hall’s large pay package. He was contractually entitled to a 2009 pay package that could be worth $100 million.