Glencore kicks off $1bn share buyback programme

 
Rebecca Smith
Glencore is one of the world's mining giants
Glencore is one of the world's mining giants (Source: Getty)

Mining giant Glencore said this morning it will kick off a share buyback programme of up to $1bn (£756m) which will get underway by the end of this year.

The company, which specialises in metals and minerals including copper, nickel and iron ore, has entered into an agreement with Citigroup to conduct the programme, which will be conducted in two stages.

The first $350m part gets underway today and will be wrapped up by 7 August - the day before the announcement of the company's first-half results.

Shares rose more than two per cent in early trading.

Read more: Aviva to kick off a £600m share buyback programme

That part will be undertaken by Citi under "irrevocable instructions" to make trading decisions independently of Glencore, and after the 7 August, for the second part of the programme, trading decisions may be taken by Citi "in accordance with the directions of the company".

The mining giant said that it is currently intended that any ordinary shares of the company purchased will be held in treasury.

Earlier this week, the FTSE 100 miner and commodities trader was buffeted by the news that the US Department of Justice had issued a subpoena ordering Glencore to produce documents relating to its compliance with US corruption and anti-money laundering laws.

Glencore said it would review the contents of the subpoena, but the news sparked a slump in its share price - losing more than 12 per cent at one point.

Read more: Glencore loses £4bn in market capitalisation following DOJ probe

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