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Glencore M&A Firepower Shrinks After Probe Spurs Share Buyback

  • Analysts say $1 billion stock buyback makes deals less likely
  • Glencore shares plunged after revelation of U.S. probe
Bloomberg business news
Glencore Announces $1 Billion Share Buyback Days After Probe

Investors had long waited to see where Glencore Plc’s serial dealmaker Ivan Glasenberg would turn his firepower next. The answer was revealed on Thursday: Glencore’s own battered shares.

The company will spend up to $1 billion buying back its own shares before the end of the year. The announcement came two days after a plunge in Glencore shares, sparked by news that the U.S. is investigating the company’s dealings in Africa and South America. Analysts said the buyback plan made major acquisitions by Glencore less likely in the near future.