Glencore will buy back shares to reassure investors

Glencore will buy its own shares of up to US $ 1,000 million, a measure that could appease investors' concerns after another coup The buy-back program will begin on Thursday and last until the end of the year. end of the year, said the Swiss group, the largest global distributor of commodities. The announcement comes two days after the US authorities asked for documents related to possible corruption and money laundering activities involving Glencore companies in Nigeria, the Democratic Republic of Congo, and Venezuela. in the last ten years.

The survey eliminated about $ 5 billion of Glencore's market value on Tuesday, the most recent shock in a convulsive year for the company. The company has encountered problems related to its activities in the Congo, where it operates giant mines of copper and cobalt. He is also facing the possibility of an investigation into bribes by British prosecutors regarding his work with Israeli billionaire Dan Gertler, a close friend of Congolese President Joseph Kabila, said people close to the case .

announced Tuesday that he was reviewing the quote from the Department of Justice and would provide more information if needed.

Analysts at Liberum Capital Ltd. said Wednesday that Glencore could use a stock buyback program to boost investor confidence, and adds that the 8.1% drop in Tuesday's stock may be exaggerated. The stock has lost 18% of its value this year, while other large mining companies such as BHP Billiton Ltd., Rio Tinto Group and Anglo American Plc have increased.

Other mining giants have already announced stock repurchases to reward investors after rising commodity prices have generated higher profits. Rio Tinto promised in February an additional US $ 1 billion share buyback.

The first part of the acquisition of Glencore will reach 350 million pounds sterling ($ 463 million) and will end on August 7, the company said. . Citigroup Inc. will manage the program.