Glencore Faces Bribery Probe, Sending Shares Lower--Update
06 December 2019 - 1:52AM
Dow Jones News
By Alistair MacDonald
LONDON -- Britain's top financial cop said it is investigating
Glencore PLC for alleged bribery, sending shares of the mining and
commodities trading giant down more than 6% after regulatory woes
elsewhere have weighed on the company all year.
The U.K.'s Serious Fraud Office said it was investigating
suspicions of bribery "in the conduct of business by the Glencore
group of companies, its officials, employees, agents and associated
persons." It didn't elaborate. Glencore also disclosed the probe in
a statement on Thursday. It declined to comment further.
The agency has been looking into the mining giant's activities
in the Democratic Republic of Congo and its relationship with
Israeli diamond merchant Dan Gertler, according to a person
familiar with the probe.
Glencore's shares have fallen nearly 24% this year amid
regulatory scrutiny all over the world. During the same period,
most large miners' stock has risen. Analysts blame Glencore's
underperformance on its legal and regulatory troubles among other
factors.
Glencore said in July 2018 that it had received a subpoena from
the U.S. Justice Department, demanding records related to its
compliance with American antibribery and money-laundering laws in
the Democratic Republic of Congo, Nigeria and Venezuela. Glencore
has also said that it is the subject of an investigation by the
U.S. Commodity Futures Trading Commission.
The company has engaged external legal counsel and forensic
experts to assist in responding to the Justice Department and CFTC
investigations, Glencore said in posting its half-year results in
August.
Write to Alistair MacDonald at alistair.macdonald@wsj.com
(END) Dow Jones Newswires
December 05, 2019 09:37 ET (14:37 GMT)
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