Anglo American in Talks to Sell De Beers for About $1bn as Diamond Market Struggles
Anglo American is in discussions to sell its De Beers diamond business for about $1 billion, a fraction of the value attached to the company when it was once the world’s dominant diamond producer.
Anglo American has been seeking to divest De Beers since rejecting BHP Group’s nearly $50 billion takeover approach in 2024.
However, the sale process has been complicated by a prolonged downturn in the global diamond market.
The company has taken three impairments on De Beers in three years, reducing the unit’s carrying value to $2.3 billion in February.
Anglo American recently selected a consortium led by former De Beers CEO Gareth Penny as its preferred bidder.
The Global Diamond Consortium (GDC), which includes Namibia, Angola and major international diamond traders, is proposing to pay about $1 billion for Anglo’s 85% stake.
Under the proposed structure, approximately $750 million would be paid upfront, with a further $250 million deferred. The deal could also include additional payments linked to De Beers’ future performance.
GDC is expected to invest a further $500 million into De Beers as part of the transaction, although negotiations remain ongoing and the terms could still change.
The potential sale comes as the diamond industry faces one of its deepest downturns in decades.
Prices have been weakened by reduced Chinese luxury demand, the growing popularity of lab-grown diamonds, trade tensions and broader geopolitical uncertainty.
Anglo American acquired control of De Beers in 2011 in a transaction that valued the company at almost $13 billion. De Beers had previously been valued at more than $18 billion in 2001.
The proposed transaction will also require an agreement with Botswana, which owns a 15% stake in De Beers and has indicated that it wants to increase its ownership.
Botswana also holds a 50% interest in Debswana, its diamond-mining joint venture with De Beers.
De Beers generates about 70% of its diamond production from Botswana, with additional operations in Canada, Namibia and South Africa.
Penny, who led De Beers for five years until 2010, previously guided the company through the global financial crisis, when weaker diamond prices forced mine closures and a $1 billion rights issue to strengthen its finances.
GDC’s proposed strategy is centred on refocusing De Beers on the mining and marketing of natural diamonds while navigating the structural challenges facing the industry.
