Phillips 66 sells Euro businesses valued at $2.8 billion ahead of Elliott proxy fight vote
Elliott is seeking to break Phillips 66 up after potentially gaining four board seats following May 21 votes, attempting to sell or spin off the oil refiner's pipeline, terminals, and petrochemicals businesses. Phillips 66 already had expressed a willingness to divest its European retail businesses last year, including its prior sale last fall of its Switzerland and Liechtenstein business.
Phillips 66 is selling 65% stakes in the Germany and Austria businesses to a consortium led by Energy Equation Partners and Stonepeak that will bring in $1.6 billion in pre-tax cash proceeds, giving the businesses a total enterprise value of $2.8 billion. The deal includes 970 retail fueling sites, of which 843 are JET-branded stores.
Phillips 66 said the proceeds will go toward debt reduction and shareholder returns.
'This transaction advances our strategy to optimize our portfolio and enhances long-term shareholder value,' said Mark Lashier, Phillips 66 chairman and CEO, in a statement. 'The newly formed joint venture allows us to monetize this non-core asset while retaining the ability to benefit from its future growth.'
The ongoing proxy fight that comes to a head next week pits one of the energy sector's most storied players, against arguably the most influential activist fund manager in the world, led by billionaire Paul Singer.
Elliott owns a nearly 6% stake in Phillips 66 and is pushing for major change, arguing that Phillips 66 has performed below peers such as Marathon Petroleum and Valero Energy, and that Phillips 66 needs to focus on its core oil refining business instead of continuing to grow its midstream pipeline and terminals businesses. Likewise, Chevron has expressed an interest in buying out Phillips 66's stake in its Chevron Phillips Chemical joint venture.
That runs counter to Phillips 66's strategy of late to grow its midstream pipeline business, especially in natural gas liquids (NGLs), such as propane, butane, and ethane—the primary petrochemical feedstock, which Phillips 66 sees as its largest growth potential.
Elliott notched wins earlier this week when prominent proxy advisory firms Institutional Shareholder Services (ISS), Glass Lewis, and Egan-Jones all sided with Elliott's proposed board changes in the proxy fight, arguing that Phillips 66 has regularly fallen short of market expectations in recent years.
Elliott said in a prepared statement that 'ISS cited Phillips 66's disappointing operating performance, poor corporate governance, and 'track record of providing selective and ambiguous disclosure' as reasons to support Elliott's 'strong slate.' With all three proxy advisory firms having endorsed Elliott's case, it is clearer than ever that urgent and meaningful change is needed in the Phillips 66 boardroom.'
Elliott also is pushing for a non-executive chair to lead the board.
Phillips 66 countered that it disagrees with the proxy advisory firms' decisions, contending that they failed to properly examine Elliott's thesis for breaking up the company, and that they relied on outdated information and analyses.
Lashier said Phillips 66 is in the early days of its transformation strategy and that it is producing stronger results of late.
'Elliott is seeking rapid, irreversible change in pursuit of a short-term thesis that would introduce significant risks to Phillips 66 shareholders,' Phillips 66 said in a statement. 'Do not let Elliott's short-term and misinformed thesis disrupt your consistent and compelling returns.'
This story was originally featured on Fortune.com

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Bloomberg
11 minutes ago
- Bloomberg
EU Readies Tariff Plan for US if Trade Talks Fall Through
The European Union plans to quickly hit the US with 30% tariffs on some €100 billion worth of goods in the event they fail to strike a trade deal and President Donald Trump carries through with his threat to impose that rate on most of the bloc's exports after Aug. 1. The plans come as EU member states, including Germany, have hardened their positions in response to the US stiffening its negotiating stance.


Business Wire
40 minutes ago
- Business Wire
ID Logistics: Continued Strong Growth Momentum in the Second Quarter of 2025, With Revenues Up+ 16.5%
ORGON, France--(BUSINESS WIRE)--Regulatory News: ID Logistics (ISIN: FR0010929125, Ticker: IDL), the European leader in contract logistics, today announced its revenues for the second quarter of 2025. Eric Hémar, Chairman and CEO of ID Logistics, commented: " In the second quarter of 2025, ID Logistics continued to record solid revenues growth. All geographic regions grew, particularly the United States, with an increase in activity of more than 30% at constant exchange rates. In addition, the number of tenders remains high. With already about fifteen new operations already launched since the beginning of 2025, ID Logistics is on track with its business plan and should record another year of growth in 2025." CONTINUED STRONG REVENUES GROWTH IN THE SECOND QUARTER OF 2025: +14.3% (+16.5% AT CONSTANT EXCHANGE RATES) ID Logistics posted revenues of €893.9 million in the second quarter of 2025, up +14.3%. Adjusted for an overall unfavorable currency effect during the quarter, growth was +16.5% compared to the second quarter of 2024, while the basis for comparison was particularly high (+16.0% in Q2 2024). During the second quarter of 2025, the following trends were particularly noticeable: Very strong activity in France (27% of Group revenues) with growth of +15.9%, continuing the strong rebound observed since the fourth quarter of 2024; Good revenues growth in Europe excluding France (47% of Group revenues) +10.2% on a like-for-like basis; Very strong momentum in the United States (18% of Group revenues), with revenues up 31.8% on a like-for-like basis; A 28.1% increase on a like-for-like basis for Latin America and Asia (8% of Group revenues); During the second quarter of 2025, the Group launched eight new projects. ID Logistics thus ended the first half of 2025 with revenues of €1,761.7 million, up 16.0%, including 17.1% at constant exchange rates. During the first six months of 2025, ID Logistics started 14 new projects, a similar level compared to H1 2024. NEW CONTRACTS ID Logistics responded to a steady stream of tenders during the second quarter of 2025. For example, the Group won or started the following new contracts: In France, La Redoute, the French leader in fashion and home e-commerce, has entrusted ID Logistics with the outsourcing of its main logistics activity. Highly mechanized, this 42,000 sq.m. site with more than 300 employees is organized to process more than 3,500 orders per hour. In Poland, ID Logistics has launched a new business for a fast-growing global leader in chocolate candy. In a 30,000 sq.m. warehouse at the customer's production site south of Warsaw, the Group provides warehousing, preparation and co-packing services with around 50 employees. In the United Kingdom, after starting two operations in 2023 and 2024 for a global fashion leader, ID Logistics is continuing its development and will launch a new operation in the third quarter of 2025 for a global e-commerce leader and long-standing customer of the Group. Based in Leeds in the north of the country, this operation will employ 250 people at a 52,000 sq.m. site. In Brazil, ID Logistics launched two sites during the quarter for one of its long-standing customers in e-commerce. The first is in the state of Rio de Janeiro, covering an area of 31,000 sq.m., and the second is in the state of Minas Gerais, covering an area of 51,000 sq.m. They employ more than 900 people in total. OUTLOOK With a diversified customer portfolio of leading players, a balanced geographical presence and a solid development model, ID Logistics is well positioned to continue its growth trajectory. In the short term, the Group is focusing on the smooth start-up of the many operations planned for this year and on maintaining its proximity to its customers in order to provide them with innovative solutions in a rapidly changing global macroeconomic environment. NEXT PUBLICATION 2025 half-year results: August 27, 2025, after market close. ABOUT ID LOGISTICS: ID Logistics, headed by Eric Hémar, is an international contract logistics group with revenues of €3.3 billion in 2024. ID Logistics manages nearly 450 sites in 18 countries representing, more than 9 million m² operated in Europe, America, Asia and Africa, with 42,000 employees. With a customer portfolio balanced between distribution, e-commerce and consumer goods, ID Logistics is characterized by offers involving a high level of technology. Since its creation in 2001, the Group has developed a social and environmental approach through a number of original projects, and is now firmly committed to an ambitious CSR policy. ID Logistics shares are listed on the Euronext regulated market in Paris and are included in the SBF 120 index (ISIN code: FR0010929125, Mnemo: IDL). APPENDIX CHANGE ON A LIKE-FOR-LIKE BASIS Changes in revenues on a like-for-like basis reflect the organic performance of the ID Logistics Group, excluding the impact of: changes in the scope of consolidation: the contribution to revenues of companies acquired during the period is excluded from this period, and the contribution to revenues of companies sold during the previous period is excluded from this period; changes in applicable accounting principles; variations in exchange rates, by calculating revenues for different periods on the basis of identical exchange rates: thus, published data for the previous period are converted using the exchange rate for the current period. Change in revenues from reported to comparable data
Yahoo
43 minutes ago
- Yahoo
Octus Identifies Key CLO Trends for the First Six Months of 2025, Showing Market Volatility Sparked by Tariffs
Company Launches U.S. and European CLO Rankings NEW YORK, July 23, 2025--(BUSINESS WIRE)--Octus, the essential credit intelligence and data provider for the world's leading buy-side firms, investment banks, law firms, and advisory firms, today announced its comprehensive recap of the collateralized loan obligation (CLO) market for the first half of 2025. The company also introduces its CLO League Tables with rankings data of top participants across the U.S. and European markets, further enhancing transparency and analytical capabilities for market participants. "The first half of 2025 presented a complex and dynamic landscape for the CLO market, highlighted by significant volatility, evolving policy shifts, and strategic global reallocations," said Hugh Minch, Managing Editor, CLO Insights at Octus. "Our in-depth analysis provides critical clarity amidst these challenges, and with the launch of the Octus CLO League Tables, we are excited to deliver an unprecedented level of insight into manager and arranger activity, empowering our clients to make even more informed decisions." Key Trends and Developments from H1 2025 Identified by Octus Data: Market volatility sparked by tariff announcements: The U.S. tariff announcement in April led to a sharp selloff in the leveraged loan market, with transportation, home furnishings, and automotive sectors experiencing the largest average loan price declines in the U.S. CLO liabilities widened sharply but retraced most of their losses following the tariff pause, with the volatility ultimately presenting buying opportunities as spreads reset at more attractive levels. Global reallocation and European momentum: U.S. investors are actively reallocating capital into European CLOs, particularly into equity and mezzanine tranches. This shift is driven by relative value, wider liability spreads, higher modeled equity returns, and perceived macro stability, all contributing to expectations of strong issuance volumes through early July. Divergence in fundamentals and pricing: Despite modest improvements in interest coverage ratios, CLO portfolio revenue growth declined to 4.74% in Q1 U.S. from 6% in Q4 2024, and net leverage slightly increased in the first quarter of 2025. This divergence highlights the increasing importance of manager quality and defensive positioning as idiosyncratic risk rises across sectors. Surging insurance demand amid regulatory uncertainty: Insurers significantly increased CLO allocations by $14 billion in the past year, with CLOs now comprising over 6% of life insurers' balance sheets. This strong demand, particularly for AAA and AA-rated tranches, is driven by capital efficiency and low duration risk. However, proposed NAIC changes could reshape CLO tranche allocations, potentially pushing investors higher up the capital stack. Octus Strengthens CLO Coverage with Global Team Expansion and New CLO Rankings: Octus has significantly expanded its global CLO team with dedicated coverage and support for the market, further solidifying its commitment to providing unparalleled credit intelligence. "Consistent with the company's strategy to cover all segments of the global credit market, Octus' dedicated CLO coverage team is now global with eight editorial members based in London and New York. This further highlights the company's expertise in a very attractive segment of the credit market," said Adelene Lee, Executive Editor, Global Credit Initiatives. This expansion underpins the launch of the company's comprehensive CLO League Tables below. These rankings provide granular insights into manager performance across both the U.S. and European markets, including: Top Global CLO Managers (U.S. and Europe): Blackstone ($58.88bn), Apollo [Redding Ridge] ($52.32bn), Carlyle ($48.64bn), Golub ($42bn), BlackRock ($40.71bn) Top CLO Arranging Banks (Global): Bank of America ($38.41bn), Citi ($26.72bn), BNP Paribas ($25.1bn), JPMorgan ($24.13bn), Morgan Stanley ($21.78bn) Top U.S. BSL CLO Managers: Blackstone ($39.17bn), Carlyle ($36.55bn), Apollo [Redding Ridge] ($31.59bn), UBS Asset Management ($30.33bn), CIFC Asset Management ($29.86bn) Top U.S. Private Credit CLO Managers: Golub ($29.16bn), Antares ($13.28bn), Apollo [Redding Ridge] ($7.76bn), AllianceBernstein ($7.67bn), BlackRock ($7.51bn) Top European CLO Managers: CVC (€13.46bn), Blackstone (€11.6bn), Apollo [Redding Ridge] (€11bn), KKR (€10.11bn), BlackRock (€9.93bn) Top U.S. BSL CLO Arranging Banks: Bank of America ($32.02bn), Citi ($18.99bn), JPMorgan ($14.93bn), Wells Fargo ($14.32bn), Morgan Stanley ($13.61bn) Top U.S. Private Credit CLO Arranging Banks: Wells Fargo ($5.97bn), BNP Paribas ($5.34bn), Societe Generale ($4.06bn), Deutsche Bank ($3.71bn), Natixis ($2.89bn) Top European CLO Arranging Banks: Jefferies (€7.67bn), BNP Paribas (€7.15bn), JPMorgan (€6.31bn), Bank of America (€5.14bn), Morgan Stanley (€4.94bn) Access the full CLO rankings report here. "The introduction of our CLO League Tables is a game-changer for the industry," added Darren Maharaj, Vice President of Data Strategy and Development. "By providing transparent, data-driven rankings, we are equipping investors with a powerful tool to assess manager quality and strategies, which is more critical than ever given the nuanced market conditions." Looking Forward to a Busy Q3 2025, Especially in the Insurance Sector: CLO managers anticipate a busy Q3, particularly in Europe, ahead of potential tariff reimplementation. Octus emphasizes that defensive credit selection, active portfolio management, and structural discipline will remain top priorities for navigating the evolving landscape. CLOs continue to be an essential component in insurance portfolios, offering attractive yield, capital efficiency, and structural protection. Octus will continue to deliver exclusive visibility into CLO fundamentals, track insurer allocation trends, and support clients through market analytics and portfolio health checks. To view the most recent example of Octus' ongoing, expert CLO coverage, access the company's latest report: Portfolio Analytics Wrap: Beyond Fundamentals – What's Really Driving CLO Pricing. About Octus Founded in 2013, Octus, formerly Reorg, is the essential credit intelligence and data provider for the world's leading buy-side firms, investment banks, law firms, and advisory firms. By surrounding unparalleled human expertise with proven technology, data, and AI tools, Octus unlocks powerful truths that fuel decisive action across financial markets. Visit to learn how we deliver rigorously verified intelligence at speed and create a complete picture for professionals across the entire credit lifecycle. Follow Octus on LinkedIn and X. View source version on Contacts Media Drake Mike DeleoOctusPR@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data