24th May 2022 19:20
(Alliance News) - Glencore PLC said on Tuesday it reached resolutions with the US, UK and Brazilian authorities in relation to their investigations into past bribery and market manipulation activities by the company.
The Anglo-Swiss commodity trading and mining company said that the Swiss and Dutch investigations, however, remain ongoing. The timing and outcomes of these investigations remain uncertain.
The company added that the payments for these resolutions were not expected to differ materially from existing provision of USD1.50 billion which was set aside in February.
Under the terms of the US resolutions, Glencore will pay penalties amounting to USD700.7 million to resolve bribery investigations and USD485.6 million to resolve market manipulation investigations by the US Department of Justice and the Commodity Futures Trading Commission.
This bring the total US penalty figure to USD1.02 billion. Of this amount, up to USD165.9 million will be credited against other matters, including claims in the UK.
Glencore has further agreed to pay USD39.6 million under a resolution signed with the Brazilian Federal Prosecutor's Office in connection with its bribery investigation into the company.
In addition, Glencore said it has yet to resolve investigations with the Swiss and Dutch authorities which remain ongoing.
Glencore Energy UK Ltd has also said it will plead guilty to charges brought by the UK Serious Fraud Office in respect of its bribery investigation. The penalty to be paid will be determined following a sentencing hearing currently scheduled for June 21.
Chair Kalidas Madhavpeddi said: "Glencore today is not the company it was when the unacceptable practices behind this misconduct occurred. The board and the management team are committed to operating a company that creates value for all stakeholders by operating transparently under a well-defined set of values, with openness and integrity at the forefront."
The stock closed up 1.1% at 518.64 pence in London on Tuesday.
By Heather Rydings; [email protected]
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