Anglo American has initiated preliminary discussions with banks regarding the potential listing of its De Beers diamond unit, as the company moves forward with the final phase of its comprehensive restructuring plan.
The company is pursuing a dual-track strategy: seeking a buyer for De Beers while preparing for an initial public offering (IPO) as a backup option.
This marks a significant step in Anglo’s commitment to exit the diamond business, a promise made last year as part of a broader restructuring effort led by CEO Duncan Wanblad.
The overhaul was implemented in response to a $49 billion takeover bid from BHP Group. Since then, Anglo has agreed to sell its coal and nickel mines and plans to exit platinum by the end of the year, leaving De Beers as the last remaining asset.
According to sources familiar with the matter, Anglo has begun engaging major banks about the prospect of a De Beers IPO. However, a spokesperson for Anglo American declined to comment on the matter.
Exiting De Beers has proven to be the most challenging aspect of Anglo’s restructuring, as the diamond industry faces its worst crisis in decades.
A sharp decline in Chinese demand, coupled with intense competition from synthetic diamonds, has led to significant profit losses for De Beers in recent years.
Recently, Anglo took a $2.9 billion impairment on the value of De Beers, following a $1.6 billion writedown the previous year.
Wanblad has emphasized that Anglo is not rushing to make a decision regarding De Beers, as the company seeks to avoid undermining value in a weak market.
He noted in February that while progress in exiting the business is not expected in the first half of 2025, Anglo hopes to accelerate its exit plans later in the year.
