Botswana Challenges Anglo American’s De Beers Sale Over Lack of Consultation
Botswana has expressed strong dissatisfaction with Anglo American’s handling of the potential sale of its stake in De Beers, citing a lack of proper consultation, according to sources familiar with the matter.
Anglo American is offloading De Beers as part of a broader restructuring strategy announced by CEO Duncan Wanblad, following the company’s successful defense against a takeover attempt by BHP Group last year.
Sources, who requested anonymity due to the sensitivity of the discussions, revealed that Botswana — which owns a 15% stake in De Beers — is considering purchasing Anglo’s share.
The government has reportedly enlisted advisers from a Swiss firm to explore its options. However, they claim Anglo has yet to meet with Botswana, despite the country’s preemptive rights in any such transaction.
De Beers plays a pivotal role in Botswana’s economy, which is the world’s largest producer of diamonds by value.
Diamonds constitute the bulk of the nation’s exports and account for roughly one-third of its government revenue.
A prolonged slump in diamond sales has led the government to forecast either economic stagnation or contraction this year.
“De Beers is not doing its job,” said Botswana’s President Duma Boko during a visit to Lesotho this week. “The diamonds are ours. Before the end of this year, something very drastic in that space will happen.”
An Anglo American spokesperson responded by stating that the company is engaging with the Botswana government at all appropriate stages of the process.
When contacted, Botswana’s government spokesperson referred back to the president’s remarks.
Bogolo Kenewendo, Botswana’s Minister of Minerals and Energy, confirmed that the government has appointed advisers and is actively working on acquiring a larger stake in De Beers.
Botswana also holds a 50% stake in Debswana, the primary supplier of rough diamonds to De Beers. The country maintains an investment-grade credit rating, making it well-positioned to raise the necessary capital for a potential acquisition, the sources added.
According to the current shareholder agreement, any disclosure of Debswana’s asset information to third parties requires written consent from the Botswana government.
The same sources emphasized that any deal not approved by Botswana could be blocked.
