Botswana Targets Majority Control of De Beers as Diamond Market Faces Crisis
Botswana’s President Duma Boko says his government aims to finalize a deal to acquire majority control of De Beers by the end of October, even as negotiations continue with Anglo American Plc and other interested parties.
Anglo American, which currently owns 85% of the diamond giant, began seeking to divest its stake 16 months ago as part of a broad restructuring plan.
The London-listed miner has since delayed the sale amid a prolonged slump in the natural-stone market, pressured by rising consumer demand for cheaper lab-grown diamonds, according to Bloomberg.
In February, Anglo wrote down De Beers’ value to $4.9 billion and confirmed ongoing discussions with Botswana, which already holds a 15% stake.
To fund the acquisition, Botswana is in talks with potential partners, including Oman’s sovereign wealth fund, President Boko revealed.
Diamonds remain the cornerstone of Botswana’s economy, contributing around 80% of exports and nearly one-third of government revenue.
But falling prices have triggered an economic crisis, with S&P Global Ratings projecting a second straight year of contraction in 2025.
The downturn has squeezed state finances, forcing Boko—elected in October—to declare a public health emergency in August.
Anglo American, meanwhile, has fielded approaches from other potential bidders, including two former De Beers chief executives, and is also weighing alternatives such as an IPO or a demerger of the business.
For Botswana, securing majority control would mean greater influence over the global diamond supply chain and a stronger platform to protect the value of natural stones.
Boko urged consumers to reject synthetic diamonds for engagements and weddings, stressing that effective marketing will be key to reviving demand and restoring prices.
