Media: Anglo-American is considering selling De Beers for $1 billion

NAIROBI – The multinational mining company Anglo-American is reportedly considering selling the diamond giant De Beers to a consortium led by former CEO Gareth Penny for US$1 billion: less than half the US$2.3 billion valuation put forward last February, a fall that reflects the crisis in the precious metals sector and the decline of what was once a prized asset in the British-South African company’s portfolio. This is reported by the news agency Bloomberg, marking the latest chapter in a financial and political saga that appears to be drawing to a close. When contacted by *Il Sole 24 Ore*, a spokesperson for Anglo-American declined to comment on the ‘speculation’ circulating regarding the valuation and the next steps in the sale of a subsidiary that is becoming an increasingly heavy burden and an increasingly unprofitable item on the group’s balance sheets.

Anglo-American has been seeking to sell its 85 per cent stake in De Beers, the global diamond giant currently overshadowed by the global slump in demand and the rise of synthetic gemstones, from 2024 onwards. ‘Anglo’ acquired a majority stake in the company in 2011, purchasing an additional 40 per cent from the Oppenheimer family for US$5.1 billion, on top of the 45 per cent it already held. At the time, the group was valued at US$13 billion, compared with US$9.2 billion in 2023, US$2.3 billion at the start of the year and the figure of US$1 billion being bandied about in connection with the sale. According to Bloomberg, the deal is expected to include an immediate payment of $750 million, followed by a further $250 million at a later date, in addition to a capital injection of $500 million into the company.

In recent weeks, news had emerged that the consortium led by former De Beers CEO Penny had been selected as the buyer, resolving a long-standing dispute that had dragged on for years and had also involved takeover attempts by governments such as that of Botswana. Penny, at the head of a consortium comprising private traders and governments such as those of Namibia and Angola, had already been tipped as the favourite following the withdrawal of another former De Beers chief executive, Bruce Cleaver.

In the event of a takeover, it will have to contend with the conditions and demands of Botswana, the government which already holds a 15 per cent stake in De Beers and is linked to the company through the Debswana joint venture. Gaborone’s leader, Duma Boko, who came to power in 2024, has repeatedly reiterated his intention to increase the stake to and beyond the majority threshold, thereby revitalising an industry that is vital to the public finances of one of Africa’s most stable economies. Botswana owes a quarter of its GDP, around a third of its tax revenue and over 80 per cent of its export earnings to the diamond industry. Boko has promised to revitalise the sector and exercise tighter control over it, following in the footsteps of the ‘mining sovereignty’ already expressed in various forms by governments ranging from Mali to Zimbabwe.