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Glencore to Sell Shares and Scrap Dividend to Reduce Debt

  • Company will seek to cut debt by as much as $10.2 billion
  • Plans to sell about $2.5 billion of new shares and sell assets
Glencore Xstrata Headquarters
Gianluca Colla/Bloomberg
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Glencore Plc outlined a $10 billion debt-reduction plan less than three weeks after the commodity trader and miner said it was confident it could continue to pay a dividend to shareholders and preserve its credit rating.

The Swiss producer and trader of raw materials plans to sell about $2.5 billion in new shares and assets worth as much as $2 billion. The company will also suspend dividend payments as it seeks to reduce its $30 billion in debt. The stock rose as much as 13 percent, a record intraday gain, in London trading after last week falling the most since going public in 2011.