1. Homepage
  2. Equities
  3. United Kingdom
  4. London Stock Exchange
  5. Glencore plc
  6. News
  7. Summary
    GLEN   JE00B4T3BW64


Delayed London Stock Exchange  -  11:37 2022-07-01 am EDT
424.95 GBX   -4.53%
07/01GLN : Transactions In Own Shares.
07/01GLENCORE PLC : Monthly statement on outstanding equity shares and voting rights
07/01GLENCORE PLC : Security operations
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Glencore prepares to pay up to $1.5 bln to settle U.S., UK, Brazil probes

05/24/2022 | 10:35am EDT

* Glencore agrees settlements in U.S., Brazil

* Glencore Energy (UK) charged with bribery over oil operations

* U.S. prosecutor calls bribery scheme "staggering" (Updates with details from U.S. settlement with Glencore, adds comments from prosecutors in Brazil)

LONDON/WASHINGTON May 24 (Reuters) - Glencore Plc said on Tuesday it anticipates paying up to $1.5 billion to settle accusations of bribery and market manipulation, as authorities in the United States, Britain and Brazil announced that three of the company's subsidiaries were pleading guilty to crimes.

The miner and commodity trading giant agreed to pay more than $1 billion in the United States and Brazil, with Glencore representatives also appearing in courts in the United States and Britain on Tuesday.

U.S. Attorney General Merrick Garland said a $1.1 billion accord with the U.S. will resolve both a decade-long scheme to bribe foreign officials across seven countries and separate criminal and civil charges alleging one of the company's trading arms manipulated fuel oil prices at two of the largest U.S. shipping ports.

"This represents the Justice Department's largest criminal enforcement action to date for a commodity price manipulation conspiracy in oil markets," Garland said at a press conference.

"We will continue to investigate, disrupt and hold accountable corporations that break our laws."

The company said it expects a final global settlement, including a future fine in Britain, not to exceed the $1.5 billion it set aside in its reserves in February to resolve the probes relating to operations in the Democratic Republic of Congo, Nigeria and Venezuela.

"Glencore has resolved the previously disclosed investigations by authorities in the United States, the United Kingdom and Brazil into past activities in certain Group businesses related to bribery," it said in a statement.

Any final resolution would wrap up a multi-year U.S. and British investigation that has dogged the Swiss-based multinational, which still faces corruption and bribery investigations by other countries including Swiss and Dutch authorities.

In Brazil on Tuesday, prosecutors said Glencore will pay $29.6 million directly to state-run oil company Petrobras in compensation for defrauding the company and roughly $10 million to authorities in civil penalties.

The UK Serious Fraud Office (SFO), which opened a corruption investigation in 2019 code-named Operation Azoth, said on Tuesday it had exposed "profit-driven bribery and corruption" across oil operations in Cameroon, Equatorial Guinea, Ivory Coast, Nigeria, and South Sudan.

Glencore Energy (UK) Ltd, which said Tuesday it would plead guilty to all the charges at a hearing at London's Westminster Magistrates' Court, will be sentenced on June 21.

The SFO alleged that Glencore agents and employees paid bribes worth over $25 million for preferential access to oil, with approval by the company.

Damian Williams, the top federal prosecutor in Manhattan, called the bribery scheme "staggering."

"Glencore paid bribes to secure oil contracts. Glencore paid bribes to avoid government audits. Glencore paid bribes to judges to make lawsuits disappear," he said.

As part of the resolution with the United States, Glencore is also required to hire two separate independent compliance monitors.

In March 2021, former Glencore oil trader Emilio Jose Heredia Collado pleaded guilty in San Francisco, California, to manipulating a key oil price benchmark, while former Glencore trader Anthony Stimler pleaded guilty in New York in July 2021 over his role in a scheme to bribe Nigerian officials.

However, none of the company's top executives have faced charges to date. U.S. Justice Department officials told reporters on Tuesday their investigations remain ongoing.

Spotlight on Corruption, a public interest group, welcomed the charges on Tuesday, but said it was "essential that those responsible for the wrongdoing, including senior executives and the parent company, are held to account." (Reporting by Kirstin Ridley and Clara Denina in London and Sarah N. Lynch in Washington. Additional reporting by Tyler Clifford in Washington, Jonathan Stempel in New York, Gram Slattery in Rio de Janeiro and Yadarisa Shabong in Bengaluru; Editing by Maju Samuel, Paul Simao, David Gregorio and Richard Pullin)

© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
EURO / BRAZILIAN REAL (EUR/BRL) 0.99% 5.5587 Delayed Quote.-13.22%
GLENCORE PLC -4.53% 424.95 Delayed Quote.13.34%
LONDON BRENT OIL 1.74% 111.38 Delayed Quote.43.00%
PETROBRAS 2.15% 28.53 Delayed Quote.0.28%
WTI 2.10% 108.483 Delayed Quote.40.93%
All news about GLENCORE PLC
07/01GLN : Transactions In Own Shares.
07/01GLENCORE PLC : Monthly statement on outstanding equity shares and voting rights
07/01GLENCORE PLC : Security operations
06/30GLENCORE : publishes Payments to Governments Report 2021
06/30GLENCORE : 2021 Payments to Governments Report
06/30GLENCORE PLC : Monthly statement on outstanding equity shares and voting rights
06/30GLENCORE PLC : Security operations
06/29GLENCORE : Gets a Buy rating from Deutsche Bank
06/29GLN : Transactions In Own Shares.
06/29GLENCORE PLC : Security operations
More news
Analyst Recommendations on GLENCORE PLC
More recommendations
Financials (USD)
Sales 2022 282 B - -
Net income 2022 18 062 M - -
Net Debt 2022 22 792 M - -
P/E ratio 2022 3,77x
Yield 2022 13,8%
Capitalization 66 746 M 66 746 M -
EV / Sales 2022 0,32x
EV / Sales 2023 0,34x
Nbr of Employees 81 284
Free-Float 81,3%
Duration : Period :
Glencore plc Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends GLENCORE PLC
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus BUY
Number of Analysts 20
Last Close Price 5,13 $
Average target price 7,54 $
Spread / Average Target 47,0%
EPS Revisions
Managers and Directors
Gary Nagle Chief Executive Officer & Director
Steven F. Kalmin General Manager-Finance
Kalidas V. Madhavpeddi Chairman
Patrice E. Merrin Independent Non-Executive Director
Martin James Gilbert Senior Independent Non-Executive Director
Sector and Competitors
1st jan.Capi. (M$)
GLENCORE PLC13.34%66 746
BHP GROUP LIMITED-3.49%137 591
RIO TINTO PLC-1.18%97 862
GRUPO MÉXICO, S.A.B. DE C.V.-8.03%31 414