Glencore takes share hit following U.S. subpoena

Glencore, the world’s largest commodity trader and owner of Canadian grain-handling company Viterra, has been subpoenaed by the United States Department of Justice on matters related to the Foreign Corrupt Practices Act and U.S. money laundering regulations.

Glencore shares fell 13 per cent on July 3 following the announcement before regaining some losses.

The company said it had been subpoenaed to turn over certain documents on its businesses in Nigeria, Venezuela and the Democratic Republic of Congo from 2007 to present day, Bloomberg reported.

Glencore is also facing possible bribery investigations in the United Kingdom over its relationship with Dan Gertler, an Israeli businessperson and friend of Congo President Joseph Kabila.

The stock market losses on July 3 cut US$5 billion off Glencore’s market value.

The Swiss-based company owns Viterra through Glencore Agriculture. It also has several mining interests in Canada.

The U.S. justice department has not made any allegations of wrongdoing and has not specified what it is investigating.

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