Anglo American Says No Preferred Bidder as De Beers Sale Could Fetch $1 Billion
Anglo American has denied favouring any particular buyer for its diamond business, De Beers, as the mining group continues to explore options for the struggling unit.
Anglo American CEO Duncan Wanblad said on Thursday that the company was “not exclusive with any consortium”, rejecting reports that it was favouring a consortium led by former De Beers CEO Gareth Penny.
The comments come as Anglo American considers potential offers for De Beers amid prolonged weakness in the global diamond market.
Bloomberg reported that the diamond business could be sold for as little as $1 billion, reflecting the challenges facing De Beers after several years of weaker demand and declining diamond prices.
De Beers has been undertaking a major restructuring programme to reduce costs and align production with market conditions.
As part of those efforts, the company announced earlier this month that it would halt production at its Venetia mine in South Africa for two years.
The suspension forms part of broader measures aimed at streamlining the business and responding to weaker market conditions affecting natural diamonds.
De Beers has faced increasing pressure from subdued consumer demand, lower rough diamond prices and competition from laboratory-grown diamonds.
Anglo American, which owns 85% of De Beers, has been seeking to simplify its portfolio as part of a broader restructuring strategy focused on its core mining assets.
The sale of De Beers represents a significant step in that strategy, although the final outcome will depend on negotiations with potential buyers and market conditions.
For De Beers, securing a new owner could provide an opportunity to reposition the business and navigate the challenging diamond market, while Anglo American would gain further clarity on its portfolio restructuring plans.
The company’s decision not to commit exclusively to any consortium indicates that discussions remain open as potential buyers assess the value and future prospects of the diamond business.
