Glencore Drops as U.S. Orders Documents in Corruption Probe

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Glencore Plc tumbled the most in two years as U.S. authorities demanded documents relating to possible corruption and money laundering.

The world’s biggest commodity trader said Tuesday that it’s been subpoenaed by the U.S. Department of Justice to hand over documents related to the Foreign Corrupt Practices Act and U.S money laundering statutes. The documents relate to the company’s business in Nigeria, the Democratic Republic of Congo and Venezuela from 2007 to the present.

The shares plunged as much as 13 percent before paring some of the losses, wiping up to 6.7 billion pounds ($8.8 billion) off Glencore’s market value, more than half the $14.8 billion of profit the company made last year.

It’s been a tumultuous year for Glencore, mostly due to challenges linked to its business in the Congo, where it operates giant copper and cobalt mines. The Swiss trader and miner is already facing the possibility of a bribery investigation by U.K. prosecutors over its work with Dan Gertler, an Israeli billionaire and close friend of Congo President Joseph Kabila, people familiar with the situation said in May.

Read the original article here: bloomberg.com


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