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Glencore shares tumble on US corruption probe

LONDON – Shares in Swiss miner Glencore tumbled more than 12 percent in London trading on Tuesday after the group revealed a US probe into alleged corruption.

Glencore shares were down at 306.50 pence around 0920 GMT on London’s rising stock market after the company said it was being investigated by US authorities over its business in Nigeria, Venezuela and the Democratic Republic of Congo.

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“Metals giant Glencore is under pressure as news broke that the company, which is headquartered in Switzerland but has operations on most continents, has been subpoenaed by the US Department of Justice,” said Fiona Cincotta, a senior market analyst at trading firm City Index.

“The DoJ is taking a magnifying glass to Glencore’s operations in Nigeria, the Democratic Republic of Congo and Venezuela over the last ten years and is asking to see all documents required to prove compliance with US anti-bribery and anti-money laundering regulations,” she added.

Chief trader at Ayondo Markets Jordan Hiscott said that the shock news was “clearly negative” for the mining giant.

AFP

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