Mitsubishi close to selling oil hedging unit-source | world | Hindustan Times
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Mitsubishi close to selling oil hedging unit-source

world Updated: Jul 05, 2010 19:20 IST

Japan's largest trading house Mitsubishi Corp is close to selling its oil derivatives unit, a source familiar with the matter told Reuters.

Petro Diamond Risk Management Ltd (PDRM), Mitsubishi's British subsidiary, booked losses of about 23.9 billion yen ($256.8 million) from hedging jet fuel for bankrupt Japan Airlines in the business year that ended March 31.

"We decided to get out of this business," the source said.Japan Airlines used to account for about half the unit's hedging business.PDRM is asking for agreements from other hedging customers, including European airlines, to transfer existing hedging contracts to the buyer, who will carry out hedging for them after the deal, the source said.

Mitsubishi's press office in Tokyo could not be reached.

The source declined to specify when the deal would be done. The source also did not reveal the potential buyer, the value of the deal or the names of the customers.

In November last year, a London-based official with PDRM said Mitsubishi would shut the unit but also did not rule out selling it.