Phibro

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Phibro
Type Subsidiary
Industry Commodities trading
Founded 1901
Headquarters Westport, Connecticut
Key people Andrew J. Hall
Website www.phibro.com

Phibro LLC is an international commodities trading firm and a subsidiary of Occidental Petroleum Corporation (Oxy). Phibro trades in crude oil, oil products, natural gas, precious and base metals, agricultural products, commodity-related equities, and other products. Phibro’s headquarters are located in Westport, Connecticut, with additional offices in London, Ireland and Singapore.[1]

History

The company was founded in 1901[2][3][4] as Philipp Brothers.[5] It was later acquired and became the Philipp Brothers Division of Engelhard Minerals & Chemicals Corporation. In 1981 the company was spun off as Phibro Corporation, and that same year the company subsequently acquired Salomon Brothers, creating Phibro-Salomon Inc.[6] Phibro Energy, Inc. was established in 1984, absorbing the oil department of Philipp Brothers. In 1986, the combined company removed the Phibro name from the parent company.[7] In 1993, Phibro Energy, Inc. became the Phibro Energy Division of Salomon Inc.[8] It was renamed to simply "Phibro" in 1996, and in 1997, Salomon was acquired by Travelers Group, which merged with Citicorp to form Citigroup in 1998.[7] With the merger, Salomon became an indirect, wholly owned subsidiary of Citigroup.

Phibro came to the notice of the public when its leader, Andrew J. Hall reportedly was seeking a $100 million bonus from Citigroup, which had been bailed out by U.S. taxpayers in 2009. Reportedly Phibro was the main source of the $2 billion in pretax revenue Citigroup received in commodities trading.[9]

In October 2009, Occidental Petroleum announced it would acquire Phibro from Citigroup, estimating its net investment at approximately $250 million.[10] Phibro is now part of Oxy's "Midstream, Marketing and Other segment", which includes Oxy’s gas plant, pipelines, marketing, trading, and power generation operations.[11] Hall continues to run Phibro and also heads Astenbeck Capital Management, of which 80% is owned by Hall and 20% by Occidental.[12]

References

  1. ↑ Phibro, LLC. "Phibro". Retrieved 19 December 2010. 
  2. ↑ Tom Cahill and Justin Baer (2006-06-25). "Citigroup Adds More Than 30 to Energy-Trading Unit (Update1)". Bloomberg. Retrieved 24 December 2010. 
  3. ↑ Bloomberg. "Phibro LLC: Private Company Information - BusinessWeek". Retrieved 19 December 2010. 
  4. ↑ Phibro. "Phibro". Retrieved 24 December 2010. 
  5. ↑ Corkery, Michael (October 9, 2009). "10 Things You Didn't Know About Phibro and Andrew Hall". Wall Street Journal. 
  6. ↑ http://www.fundinguniverse.com/company-histories/Salomon-Inc-Company-History.html
  7. ↑ 7.0 7.1 "FACTBOX: A history of Citi's Phibro unit". Reuters. 2009-10-09. Retrieved 19 December 2010. 
  8. ↑ Kenneth N. Gilpin (1993-02-04). "COMPANY REPORTS; Salomon Shows a Turnaround in Earnings". New York Times. Retrieved 19 December 2010. 
  9. ↑ Segal, David (August 1, 2009). "$100 Million Payday Poses Problem for Pay Czar". New York Times 
  10. ↑ Occidental Petroleum (2009-10-09). "Occidental Petroleum Announces Acquisition of Phibro". Business Wire. Retrieved 19 December 2010. 
  11. ↑ Occidental Petroleum. "Oxy – Chairman's Letter - Midstream, Marketing, And Other". Retrieved 19 December 2010. 
  12. ↑ Gregory Zuckerman (2010-06-25). "Commodities Star Absorbs Loss". Wall Street Journal. Retrieved 19 December 2010. 

Further reading

  • Copetas, A. Craig (1986). Metal Men: How Marc Rich Defrauded the Country, Evaded the Law, and Became the World's Most Sought-After Corporate Criminal. Harper Perennial. ISBN 978-0060970604. 
  • Ammann, Daniel (2009). The King of Oil: The Secret Lives of Marc Rich. New York: St. Martin‘s Press. ISBN 0-312-57074-0. 
  • Waszkis, Helmut. The History of a Trading Giant. Metal Bulletin. ISBN 0-947671-12-9. 

External links

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