Glencore has been making headlines in recent months, and it's worth taking a closer look at what's been going on. The company's decision to sell its Las Bambas copper mine in Peru has been a major talking point.
The sale of Las Bambas is reportedly worth $6.7 billion, a significant move for the company. This deal is a major part of Glencore's strategy to focus on its core assets and reduce its debt.
Glencore's financial struggles have been well-documented, with the company facing significant challenges in recent years. The sale of Las Bambas is a step towards addressing these issues.
The company's focus on reducing debt is a smart move, given the current market conditions. By streamlining its operations and selling off non-core assets, Glencore is positioning itself for long-term success.
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Glencore's Legal Issues
Glencore's bribery scandal in 2018 led to a $1.1 billion settlement in the US and a £385 million fine in the UK.
In 2017, Glencore was charged with bribery and corruption in the US, UK, and Brazil.
The company pleaded guilty to bribery charges in the US and agreed to pay a $1.1 billion fine.
Glencore's bribery scandal was not an isolated incident, as the company has been involved in several other legal issues over the years.
The company has faced allegations of bribery and corruption in several countries, including the Democratic Republic of Congo and Nigeria.
Glencore's CEO, Ivan Glasenberg, has faced criticism for his handling of the bribery scandal and the company's overall corporate governance.
In 2018, Glencore's auditor, KPMG, resigned as the company's auditor due to concerns over Glencore's accounting practices.
Glencore has also faced criticism for its role in the 2015 commodities price-fixing scandal.
The company has been accused of manipulating oil prices and colluding with other companies to fix prices.
Glencore has denied any wrongdoing in the commodities price-fixing scandal.
The company has agreed to pay a $130 million fine to settle charges related to the commodities price-fixing scandal.
Glencore's legal issues have had a significant impact on the company's reputation and financial performance.
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Glencore's Business Moves
Glencore is moving ahead with plans to spin-off its thermal coal business after sealing a $6.93 billion deal for Teck's coal division.
The company will merge Teck's steelmaking coal business with its own coal assets, creating a combined unit.
Glencore will then demerge the combined unit, effectively separating its coal business from the rest of the company.
This move comes after Glencore clinched the deal for Teck's coal division on Tuesday.
Frequently Asked Questions
What is the projection for Glencore?
According to analysts, Glencore's average 12-month price target is GBX 516.25, representing a 45.28% potential upside from its current price of GBX 355.35.
Is Glencore a good company to invest in?
Glencore's recent stock performance suggests a potential investment opportunity, but its connection to the copper price has weakened. Investors should carefully consider the company's current market trends before making a decision.
Sources
- https://www.justice.gov/opa/pr/glencore-entered-guilty-pleas-foreign-bribery-and-market-manipulation-schemes
- https://www.the-independent.com/topic/glencore
- https://www.accr.org.au/news/glencore-holds-on-to-coal-ratcheted-up-transition-risk-needs-a-plan/
- https://www.mining.com/glencore-ready-to-spin-off-coal-unit-after-sealing-tecks-buy/
- https://secure.northernminer.com/company/glencore/
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