NEW YORK Citi announced today that it will sell 100% of its interest in Phibro LLC to Occidental Petroleum Corporation for a purchase price equal to approximately the net asset value of the business. The sale is expected to close in the fourth quarter pending regulatory approvals.
Terms of the transaction were not disclosed and are not material to Citigroup's earnings. Certain executives of Phibro have agreed with Citi that their compensation for 2009 will be deferred and reinvested into Phibro and will be paid out in future years.
The decision to sell Phibro was the outcome of an evaluation of a variety of alternatives and is consistent with Citi's core strategy of a client-centered business model. The sale of Phibro does not affect Citi's client-facing commodities business lines, which will continue to operate and serve the needs of Citi's clients throughout the world.
Citi, the leading global financial services company, has approximately 200 million customer accounts and does business in more than 140 countries. Through Citicorp and Citi Holdings, Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Additional information may be found at www.citigroup.com or www.citi.com.