By Mark Burton, Bloomberg.
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Glencore Plc plans to buy back up to $1 billion of its shares following the completion of the sale of its agricultural business to Bunge.
The deal to sell the Viterra unit closed on Wednesday, with Glencore receiving shares representing a 16.4% stake in Bunge, and about $900 million in cash. The ‘surplus capital; from Bunge shares will underpin its buyback program, Glencore said.
Glencore’s shares plunged to the lowest in more than four years during a tariff-fuelled selloff in metal markets in April. They’ve clawed back some losses in recent weeks, but are still down about 35% over the past year, and underperforming against rivals including BHP Group, Rio Tinto Group, and Anglo American Plc.
The miner has had a firm focus on returning cash to shareholders in recent years, with a top-up buyback of $1 billion announced in February even as its earnings declined.
The additional buyback will start on July 7 and will be completed before its full-year results in February, the company said.