GLCNF - Glencore plc

Other OTC - Other OTC Delayed Price. Currency in USD
2.9900
+0.1000 (+3.46%)
At close: 3:26PM EST
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Previous Close2.8900
Open2.9000
Bid0.0000 x 0
Ask0.0000 x 0
Day's Range2.9000 - 3.0100
52 Week Range2.6600 - 4.4900
Volume14,031
Avg. Volume26,089
Market Cap40B
Beta (5Y Monthly)1.61
PE Ratio (TTM)48.23
EPS (TTM)0.0620
Earnings DateN/A
Forward Dividend & Yield0.20 (6.92%)
Ex-Dividend Date2019-09-05
1y Target EstN/A
  • UK fraud office opens Glencore bribery probe
    Reuters Videos

    UK fraud office opens Glencore bribery probe

    UK investigators are adding to the legal woes of Glencore - one of the world's biggest commodity traders - with an announcement that Britain's Serious Fraud Office has launched a probe over suspicions of bribery. Glencore is already subject to a U.S. Department of Justice inquiry in connection with corruption in the Democratic Republic of Congo, Venezuela, and Nigeria. Britain's SFO is also looking, it said, at the conduct of Glencore businesses, its officials, employees, agents, and associated persons, but did not comment further. The British-Swiss firm - which has operations in over 150 countries - said it would cooperate. Its shares took the news badly - losing around 7% of their value by mid-afternoon trading. This year, they're down more than 20%.

  • Reuters

    Trafigura's LNG volumes jump by 27% on new trade flows, contracts

    Trafigura Group, the global commodity trader, increased its annual liquefied natural gas (LNG) trading volumes by 27%, driven by trade flows and the start of new contracts, the company said on Wednesday. Volumes rose to 12.6 million metric tonnes equivalent this year, which included the start of shipments under the company's 15-year agreement to lift supply from Cheniere Energy as well as several other mid-term contracts, Trafigura said in its annual report. "With weak demand in Asia redirecting trade flows, the European market absorbed the bulk of our Atlantic cargoes, often in conjunction with our natural gas desk, while we continued to build our position in the Far East with regionally sourced LNG," the company said.

  • Financial Times

    Fossil fuel producers lay out case for final big rally

    Ploughing investment into new oil and gas projects just as the world shifts to greener forms of energy may sound foolish, but BHP, the world’s biggest natural resources company, is nonetheless setting out the case. , Mr Glasenberg is not a disinterested observer in this debate. The company he runs is one of the world’s biggest exporters of thermal coal, which is burnt in power stations to generate electricity.

  • Financial Times

    FirstFT: Today’s top stories

    Saudi Aramco has become the most valuable company in the world after its shares began trading on Riyadh’s Tadawul stock exchange. It is also a bigger market capitalisation than the combined value of the next five biggest international oil companies. The company raised $25.6bn in the IPO, surpassing the $25bn raised by China’s Alibaba when it debuted on Wall Street in 2014 and making it the world’s largest ever IPO.

  • Reuters

    UPDATE 2-ISTIM's Malaysia warehouses held 35% of LME aluminium in Nov

    Warehousing firm ISTIM UK held 35% of total aluminium stocks in London Metal Exchange-registered warehouses in its Malaysian facilities by the end of November, data from the LME showed on Tuesday. Aluminium stocks in ISTIM's Port Klang and Johor warehouses rose 213,275 tonnes in November from the previous month to 476,846 tonnes, according to the data. The business model of ISTIM, controlled by the Whelan family who founded major warehousing company Metro, is based on queues to take material out of warehouses and earning rent from storage.

  • Financial Times

    Glencore’s ‘billionaire boys club’ under pressure from UK probe

    In the almost half century that Glencore has traded commodities, the company has had just three chief executives — including its founder Marc Rich. at Glencore ratchets up the pressure for more change at the top of a company that has made billionaires of its senior executives. The so-called “billionaire boys club” — a close-knit group of leaders, including chief executive Ivan Glasenberg, which became fantastically wealthy when Glencore listed in London in 2011 — has already seen a string of departures over the past year.

  • Glencore almost doubles its LNG trade in 2019 on surge in Asian volumes
    Reuters

    Glencore almost doubles its LNG trade in 2019 on surge in Asian volumes

    Spot liquefied natural gas (LNG) volumes traded by Glencore in 2019 have increased by more than 75% from last year, with the company ramping up its Asian presence, Nathan Arentz, Glencore's head of gas trading, told the CWC LNG conference in Rome. Once viewed as dull owing to its decades-long deals dominated by western energy giants and state firms, the LNG market has became a hot ticket over the last few years as a spot market emerged with demand growth in emerging Asian markets. Major trading firms have steadily built up a significant presence in LNG although Glencore had lagged far behind Gunvor, Vitol and Trafigura.

  • Glasenberg’s Legacy Is Marred by So Many Corruption Probes
    Bloomberg

    Glasenberg’s Legacy Is Marred by So Many Corruption Probes

    (Bloomberg) -- As Glencore Plc’s billionaire boss Ivan Glasenberg prepares to retire from a career spanning two decades atop the most powerful commodities trader, his final years will be marred by corruption probes around the world.The Swiss trading house is already facing investigations in the U.S. and Brazil, and the U.K. joined the fray when the Serious Fraud Office announced on Thursday that it’s looking into suspicions of bribery. While the news was, as one analyst put it “more of the same,” it gave investors a hard reminder that the FTSE 100 blue-chip company faces steep legal risks. Glencore shares tumbled to a three-year low.Under Glasenberg’s stewardship, Glencore has been seen as a daredevil trader and miner that could operate -- and make profits -- where few others would dare. It did deals in the Democratic Republic of Congo, with Israeli billionaire Dan Gertler, who has been sanctioned by U.S. authorities, dug for oil in Chad and cut deals across Russia and Kazakhstan.In recent years, as investor and regulatory pressure grew, Glencore pulled back from many of its riskier practices, cutting its use of third-party agents and ending ties with Gertler, though it must pay him royalties from it mines in Congo.On Friday, the U.K.’s SFO said it opened the investigation in June.“Until the investigations are over, Glencore will continue to be perceived as a very high-risk company,” said Christopher LaFemina, an analyst at Jefferies.Glencore fell 0.7% on Friday, adding to a 9% plunge that was the biggest since March 2016.Wealth HitThe legal troubles have wiped out a large part of Glasenberg’s personal fortune, which comes from owning 9.1% of Glencore. When Glencore went public in 2011, he was one of five executives to hold stakes valued at more than $1 billion, earning the company a reputation as a billionaire-minting machine.Today, only two other of the executives from the time -- Daniel Mate and Aristotelis Mistakidis, who retired last year -- hold 10-figure stakes. Together, the trio have lost about $2 billion this year, according to the Bloomberg Billionaires Index.Glasenberg’s wealth is now about $4 billion, down from as much as $7.3 billion in 2014. On Thursday, he dropped off Bloomberg’s ranking of the world’s 500 biggest fortunes.Succession QuestionGlasenberg will face tough questions about his leadership and how much longer he’ll stay at the company. The investigations could also make it harder for him to pick a successor to take what increasingly looks like a difficult job.Institutional investors have also announced a lawsuit against Glencore in connection with losses suffered. Boies Schiller Flexner has secured litigation funding for a claim that has been several months in the making and is likely “to run into the billions,” said Managing Partner Natasha Harrison.Glencore Investors to Sue for Billions Over Probes, Boies SaysA spokesman for Glencore declined to comment on the lawsuit.The shares have plummeted 35% in two years and the company is struggling with falling profits and operational problems. Glencore missed a rally in iron ore -- which it doesn’t mine -- and has come under environmental scrutiny for its vast coal operations.During a call this week, Glasenberg, 62, told investors to prepare for more leadership changes, hinting that his own departure may come sooner than previously anticipated.RBC Capital Markets has said he may step down in 12 to 18 months. Previously, Glasenberg said he would leave in three to five years.(Updates with timing of investigation in fifth paragraph.)\--With assistance from Franz Wild.To contact the reporters on this story: Thomas Biesheuvel in London at tbiesheuvel@bloomberg.net;Ben Stupples in London at bstupples@bloomberg.netTo contact the editors responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net, Liezel HillFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • U.K. Prosecutors’ Glencore Probe Is Perfect Retort to Critics
    Bloomberg

    U.K. Prosecutors’ Glencore Probe Is Perfect Retort to Critics

    (Bloomberg) -- First U.K. authorities were investigating Glencore Plc, and then they weren’t. On Thursday, the Serious Fraud Office jumped back in, saying it had opened a bribery probe into the mining company and some executives, sending the shares tumbling.The bribery investigation is a remarkable turnaround, and a clear sign how aligned the U.K. agency’s new leadership is with authorities in the U.S. The probe of possible bribery by Glencore, its officials, employees, agents and others comes after the SFO decided not to open one last year, despite the protests by some of the agency’s senior staff at the time.The announcement is the most high-profile and ambitious case by the SFO since Lisa Osofsky, a former U.S. prosecutor and FBI legal counsel, assumed the leadership in August 2018. The office has recently come under criticism by activists, lawyers and academics for not pursuing top tier cases, something Osofsky has rejected.“The general feeling since Lisa Osofsky took over as SFO director has been that there has been no news of any major new investigations and yet a number of long-running investigations have been ended without anything to show,” Aziz Rahman, who runs the business crime law firm Rahman Ravelli in London, said. “This could be seen as the perfect response to that accusation.”The SFO has had a rocky 30 years of life, with politicians frequently floating the idea of closing it. Former Prime Minister Theresa May promised to do just that in 2017, a threat she never followed through on. The threat nevertheless sapped the morale of SFO staff.Osofsky has since spoken of her willingness to take on the hardest cases, though her term has so far been more characterized by decisions to halt investigations into alleged wrongdoing at Rolls-Royce Plc and GlaxoSmithKline Plc and open narrower probes into more manageable targets.“I have every interest in prosecuting big ticket cases,” Osofsky said in an interview in October. “I have beefed up our intelligence, because I don’t want to be held prisoner to the next whistleblower walking through the door.”SFO investigators first considered looking into Glencore when suspicions emerged during their seven-year bribery probe into mining company Eurasian Natural Resources Corp., people with knowledge of the case have said. That case revolves around ENRC’s dealings with Israeli businessman Dan Gertler and his relationship with former Democratic Republic of Congo President Joseph Kabila. Glencore obtained valuable copper and cobalt mines in Congo with Gertler’s help and SFO case workers found reasonable grounds to look into that relationship too, the people said.Glencore’s institutional shareholders will now sue the firm in a U.K. court for damages suffered, because bribery probes have pushed down its share price, lawyers for Boies Schiller Flexner said on Thursday. The lawsuit is “expected to run into the billions,” Boies said. A spokesman for Glencore declined to comment.Spokespeople for Gertler, ENRC and Kabila all deny wrongdoing.The U.S. Justice Department opened its own investigation into Glencore’s activities in Congo, Nigeria and Venezuela in July 2018, prompting an acting SFO director to reject his own team request to open a case. In the October interview, Osofsky declined to disclose whether the office would probe Glencore.“We announce certain things when they are in the interest of U.K. Plc,” Osofsky said. “But I am not able to discuss any specific cases and you don’t know what may or may not be going on.”The SFO case will probably be in close coordination with U.S. counterparts, after Osofsky, a joint U.S.-U.K. national, has worked hard to stabilize an often fractious partnership. Under her leadership, the SFO has allowed the Justice Department to take the lead on a high-profile case it had been investigating for several years. It is likely that the two will be collaborating on the Glencore case too.(Updates with shareholder suit in ninth paragraph.)To contact the reporter on this story: Franz Wild in London at fwild@bloomberg.netTo contact the editors responsible for this story: Anthony Aarons at aaarons@bloomberg.net, Christopher Elser, Nicholas LarkinFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Argentine Political Swing Hits Glencore Partner at Top Soy Plant
    Bloomberg

    Argentine Political Swing Hits Glencore Partner at Top Soy Plant

    (Bloomberg) -- Fallout from Argentina’s flip back to an interventionist government has put crop trader Vicentin SAIC in a financial bind.The nation’s top shipper of soybean meal and oil is working out how it can make good on $350 million of payments it missed this week to farmers while it restructures debt worth even more, the firm said Thursday via an external public relations representative.Vicentin, which operates a joint venture on the Parana River with Glencore Plc, said it’s been hurt by recurring crises in Argentina, including high borrowing costs. Argentine markets collapsed earlier this year when President-elect Alberto Fernandez trounced business-friendly incumbent Mauricio Macri in a vote. That’s because investors anticipated measures like a return to high export taxes, as well as price and capital controls that marked the administration of Fernandez’s running mate, Cristina Fernandez de Kirchner.With the Fernandez duo taking office next week, farmers -- moving to skirt the expected tax hike -- have been hurrying to complete sales of a huge volume of soybeans.That’s put Vicentin on the back foot, and the liquidity squeeze could change how soy crushers in Argentina trade, according to Chicago-based AgResource.“Argentine exporters and crushers will move to doing business on more of a spot basis, compared to offering product out months in advance as has been the case in recent years,” AgResource analysts wrote in a report.While full details of Vicentin’s financial stress are unclear, the news helped trigger a rally in Chicago soybean meal futures. Gains in January meal of as much as 2.2% are the biggest since Nov. 7. Argentina is the top exporter of soy meal, used for animal feed.Vicentin’s predicament raises concerns about Argentina’s capability to keep up global supplies of soy products, according to Michael McDougall, a broker at Paragon Global Markets in New York.“If one of the larger crushers is already having issues, even before the new government comes in and most likely increases export taxes, then the caution factor will rise even more,” McDougall said. “So we are already seeing demand for meal.”Renova, the JV with Glencore, operates the world’s biggest soybean processing plant. Last year, Vicentin shipped out 5.3 million metric tons of soy meal and oil.Rosario-based news portal PuntoBiz first reported the news.To contact the reporters on this story: Jonathan Gilbert in Buenos Aires at jgilbert63@bloomberg.net;Michael Hirtzer in Chicago at mhirtzer@bloomberg.net;Isis Almeida in Chicago at ialmeida3@bloomberg.netTo contact the editors responsible for this story: James Attwood at jattwood3@bloomberg.net, Reg GaleFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Britain's fraud office opens Glencore bribery investigation
    Reuters

    Britain's fraud office opens Glencore bribery investigation

    Since July last year, Glencore has been subject to a U.S. Department of Justice enquiry in connection with corruption in the Democratic Republic of Congo, Venezuela and Nigeria. Britain's SFO on Thursday said it was also investigating the conduct of Glencore businesses, its officials, employees, agents and associated persons, without commenting further.

  • Glencore's Lawyers Get Set for Another Pay Day
    Bloomberg

    Glencore's Lawyers Get Set for Another Pay Day

    (Bloomberg Opinion) -- In 2018, Glencore Plc incurred $24 million of legal and other costs in relation to a U.S. Department of Justice investigation into its compliance with bribery and money-laundering rules when doing business in the Democratic Republic of Congo and elsewhere. The miner-cum-commodities trader spent another $45 million consulting lawyers and experts about the various ongoing investigations in the first six months of this year, its accounts show.So news that the U.K’s Serious Fraud Office has also opened an investigation into suspicions of bribery is probably bullish for the London and Swiss legal community (the mining giant is listed in the former and based in the latter). For Glencore shareholders, however, it’s a bitter reminder that the globe-spanning group can’t easily move on from its legal troubles; the shares slumped 8% on Thursday to a three-year low.Earlier this week Glencore’s 62-year-old chief executive officer Ivan Glasenberg hinted that his almost 18-year tenure was drawing to a close. After a succession of senior departures, he’s one of the last top managers remaining from the company’s pre-initial public offering vintage.He also committed this week to further cutting Glencore’s ratio of net indebtedness to Ebitda (a measure of cash earnings). In that respect, Glencore is a less risky proposition than it was in 2015, when its shares collapsed because of leverage worries. As such, it can withstand the legal uncertainty around some of its alleged previous activities. Even allowing for heavy investments, the company thinks it can generate about $4.4 billion of free cash flow next year if commodity prices remain the same. It’s promising a dividend of at least 20 cents — a pretty decent yield of 7%.Nevertheless, even if Glasenberg makes way for a new generation, his successors will probably remain bogged down by many of the same problems.Glencore hasn’t made a provision in its accounts for its legal woes because it’s unable to estimate the quantum of fines and legal damages that could arise. While Glencore says it will cooperate with the SFO probe, it didn’t provide further details. Absent better information, some investors will be inclined to worry.And then there is Glencore’s continuing commitment to thermal coal, despite overwhelming evidence that burning the stuff is contributing to a global climate crisis. This gives sustainability-minded investors another reason to avoid the shares.  Thursday’s dramatic sell-off, following formal confirmation of an investigation some people thought was coming anyway, merely underscores the volatile nature of Glencore as an investment. Glasenberg’s departure wouldn’t change that.To contact the author of this story: Chris Bryant at cbryant32@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Glencore Under Investigation for Bribery by U.K. Authorities
    Bloomberg

    Glencore Under Investigation for Bribery by U.K. Authorities

    (Bloomberg) -- Glencore Plc is being investigated for bribery by U.K. authorities, deepening the legal troubles that threaten the world’s biggest commodities trader. The shares fell as much as 8.6% to a three-year low.The move by the Serious Fraud Office adds to ongoing corruption probes that Glencore is facing in the U.S. and Brazil, which have scared investors and shaken the company over the past two years. The SFO cast a wide net, saying it’s looking into suspicions of bribery by the company, its employees, agents and associated persons.“This is an obvious negative for the Glencore investment case,” said Tyler Broda, an analyst at RBC Capital Markets. “We believe this clearly will hamper sentiment in what remains a complex investment case for investors.”The language of the U.K.’s investigation, albeit with limited detail, suggests it could be wider in scope, Broda wrote in a research note. That potentially raises the penalty, if Glencore is found guilty or reaches a settlement, he said.The new probe also ramps up pressure on Glencore’s billionaire Chief Executive Officer Ivan Glasenberg. He told investors earlier this week to prepare for more leadership changes and hinted that his own departure may come sooner than previously anticipated.Glencore CEO Glasenberg Hints He May Leave Sooner Than ExpectedGlencore said it will cooperate with the probe, but didn’t provide any further details.The investigation will be also be a major test for the U.K. prosecutor, which has stumbled with some cases. Three Tesco Plc officials caught up in an accounting scandal were cleared after a pair of trials and the agency has dropped some high-profile probes into individuals at companies including Rolls-Royce Plc and GlaxoSmithKline Plc.For Glencore, the investigations have raised fundamental questions about how the business of commodities trading is conducted around the world. Traders have traditionally been willing to do business in many of the world’s most impoverished and corrupt countries. And they have long relied on agents -- intermediaries who work on commission -- to help them secure deals.‘Whacked Again’“It’s more of the same, but now it’s getting attacked from a different angle,” said Hunter Hillcoat, a London-based analyst at Investec Securities Ltd. “Glencore was already trading at a discount because of the DoJ, but when this news comes out it gets whacked again.”While the SFO didn’t specify what part of the business it was looking at, Bloomberg reported last year that the agency was preparing to open an investigation into Glencore and its work with Israeli billionaire Dan Gertler and former Democratic Republic of Congo President Joseph Kabila.Gertler and Kabila have been implicated in previous British and American bribery investigations. The U.S. imposed sanctions on Gertler in 2017, saying he’d used his friendship with Kabila to corruptly build his fortune.Gertler and Glencore first invested together in a Congolese mine in 2007 and developed a close partnership over the years in the Mutanda and Katanga Mining copper and cobalt operations. While Glencore has cut its business relations with Gertler, it still must pay him royalties for the mines.Glencore is being investigated by the U.S. Department of Justice and Brazilian authorities in the Car Wash scandal. The company has also been subpoenaed by the Justice Department for documents relating to possible corruption and money laundering in Nigeria, the Democratic Republic of Congo and Venezuela. The U.S. Commodity Futures Trading Commission is also investigating the company for possible corrupt practices.In response to the DoJ investigation, which the company also says it’s cooperating with, Glencore set up a board committee to respond to a U.S. probe, that included chairman and former BP Plc Chief Executive Officer Tony Hayward.(Adds analyst comment in third and fourth paragraph.)To contact the reporter on this story: Thomas Biesheuvel in London at tbiesheuvel@bloomberg.netTo contact the editors responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net, Liezel HillFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • UK bribery investigation adds to Glencore's legal headaches
    Reuters

    UK bribery investigation adds to Glencore's legal headaches

    The UK's Serious Fraud Office (SFO) has launched a bribery investigation into Glencore , adding to legal troubles that have hit the shares of one of the world's biggest miners and commodity traders. The SFO said on Thursday it had opened an investigation into suspicions of bribery in the conduct of business by the Glencore group of companies, its officials, employees, agents and associated persons in June.

  • European stocks advance while British equities get left behind as sterling climbs
    MarketWatch

    European stocks advance while British equities get left behind as sterling climbs

    European stocks mostly rose on Thursday, with the exception of U.K. equities, as multinationals suffered from the continued run-up in the British pound.

  • Reuters

    REFILE-UPDATE 2-Britain's fraud office opens investigation into Glencore

    Britain's Serious Fraud Office (SFO) has launched an investigation into Glencore concerning "suspicions of bribery," the company said on Thursday. Glencore, one of the world's biggest commodity traders, is already subject to a U.S. Department of Justice enquiry in connection with corruption in Democratic Republic of Congo, Venezuela and Nigeria. The SFO confirmed https://www.sfo.gov.uk/2019/12/05/sfo-confirms-investigation-into-suspected-bribery-at-glencore-group-of-companies it was investigating the conduct of business by the Glencore group of companies, its officials, employees, agents and associated persons, but said it could not comment further on a live investigation.

  • Investing.com

    NewsBreak: Glencore Plummets on New SFO Probe Report

    Investing.com -- Shares in Glencore (LON:GLEN), the world's biggest mining group, fell sharply on Thursday after it said the U.K.'s Serious Fraud Office (SFO) has opened an investigation into suspicions of bribery in its dealings.

  • Financial Times

    Glencore probed by UK fraud watchdog over ‘suspicions of bribery’

    The UK’s Serious Fraud Office has opened an investigation into Glencore over “suspicions of bribery”, adding to the legal troubles at the world’s most powerful commodities trader. The SFO said it was examining the “conduct of business by the Glencore group of companies, its officials, employees, agents and associated persons” but did not comment further on specific allegations. Glencore, which is based in Switzerland but listed in London, said it would co-operate with the probe and declined to comment further.

  • South Korea's SK Innovation signs Glencore cobalt supply deal
    Reuters

    South Korea's SK Innovation signs Glencore cobalt supply deal

    South Korean battery maker SK Innovation has signed a six-year deal to buy up to 30,000 tonnes of cobalt from miner Glencore, allowing it produce batteries for 3 million electric vehicles. Hit by oversupply, cobalt prices have shrunk from $95,000 per tonne in May 2018 to around $35,000 now. The slump has weighed on Glencore's share price and prompted the company to reduce output of the battery metal.

  • Financial Times

    Glencore in new cobalt supply deal with South Korean battery maker

    Glencore has signed a six-year deal to supply up to 30,000 tonnes of cobalt to SK Innovation, the Korean manufacturer, allowing it to produce batteries for 3m electric vehicles. The agreement signed on Wednesday underlines the shift in Glencore’s strategy to secure long-term deals to supply cobalt to battery material manufacturers. “This newly established partnership demonstrates the continuation of Glencore’s cobalt hydroxide marketing strategy to secure long term supply agreements with key players in the lithium-ion battery supply chain,” said Nico Paraskevas, head of copper and cobalt marketing at Glencore.

  • Glencore CEO Glasenberg Hints He May Leave Sooner Than Expected
    Bloomberg

    Glencore CEO Glasenberg Hints He May Leave Sooner Than Expected

    (Bloomberg) -- Glencore Plc Chief Executive Officer Ivan Glasenberg told investors to prepare for more leadership changes, hinting that his own departure may come sooner than previously anticipated.“There are not many of us old guys left,” said Glasenberg, 62, referring to himself and his peers as the “third generation” of leadership of the company. He said that the retirement of the remaining managers of his era should happen during 2020.While he said there was no exact timing planned for his own departure, Glasenberg indicated that it could come more rapidly than he’s previously suggested. “It could happen soon,” he said.RBC Capital Markets analyst Tyler Broda said the comments indicate that he may step down in 12 to 18 months. Last year, Glasenberg said he would leave in three to five years.“This transition could provide an ability for Glencore to potentially explore other structures or strategies (like spinning out coal) as the challenges of the 2020’s grow,” said Broda.The passage of the baton at Glencore is a significant moment for the commodities industry. The firm is the world’s largest commodity trader, dominating transactions in most industrial metals, including copper, zinc and aluminum. The CEO of the Swiss-based, London-listed company has had an outsized role in shaping the world of commodity trading since Glencore was founded by Marc Rich in 1974.But for more than a year, Glencore has worked under a cloud as the U.S. Department of Justice probes possible corruption and money-laundering at its mining operations. Profits are sliding and 40% of the company’s market value has been erased since the start of 2018.Glasenberg’s presentation to investors on Tuesday suggested the company is bracing for further upheaval. Glencore didn’t extend its share buyback program, despite predicting free cash flow next year of $4.4 billion at current commodity prices -- well above the $2.6 billion it hopes to pay in dividends.The shares dropped 3.7% on Tuesday, the most since August, to 235.65 pence.Glencore has only changed leaders twice in its 45-year history. In 1994, Rich was pushed out after a failed attempt to corner the zinc market, and Glasenberg took over from Willy Strothotte in 2002.“There’s a good crop of people who could take over,” Glasenberg said on Tuesday. Glencore hasn’t named the people in the running to replace Glasenberg, but Bloomberg reported in October that the three most likely choices are Gary Nagle, Kenny Ives and Nico Paraskevas.Many of Glencore’s most senior executives have left the company in the past 12 months, including former head of copper trading Telis Mistakidis, head of oil Alex Beard, and head of agriculture Chris Mahoney. Among those that remain are Tor Peterson, head of coal trading, and Daniel Mate, head of lead and zinc trading.\--With assistance from Mark Burton.To contact the reporters on this story: Jack Farchy in London at jfarchy@bloomberg.net;Thomas Biesheuvel in London at tbiesheuvel@bloomberg.netTo contact the editors responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net;Will Kennedy at wkennedy3@bloomberg.netFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Reuters

    UPDATE 2-Glencore's Glasenberg says successor could be in place next year

    Glencore could announce a new chief executive next year once a new management team is in place, its current boss told an investor meeting on Tuesday as the commodities giant laid out its priorities for 2020. The mining and trading company faces a challenging year as it contends with problems on multiple fronts, from a series of mine fatalities and climate politics to a continuing U.S. Department of Justice investigation and difficulties in Democratic Republic of Congo. Speculation about Ivan Glasenberg's departure has intensified after he said last year that he expected to retire in between three and five years.

  • Glencore's Glasenberg says successor could be in place next year
    Reuters

    Glencore's Glasenberg says successor could be in place next year

    Glencore could announce a new chief executive next year once a new management team is in place, its current boss told an investor meeting on Tuesday as the commodities giant laid out its priorities for 2020. The mining and trading company faces a challenging year as it contends with problems on multiple fronts, from a series of mine fatalities and climate politics to a continuing U.S. Department of Justice investigation and difficulties in Democratic Republic of Congo. Speculation about Ivan Glasenberg's departure has intensified after he said last year that he expected to retire in between three and five years.