Anglo American is progressing with the sale of its 85 per cent stake in De Beers, with chief executive Duncan Wanblad indicating that a consortium of government and private investors is the most likely outcome. Botswana, which already holds 15 per cent of the diamond group, is expected to increase its shareholding, while Angola and Namibia have also expressed interest.
Wanblad said the process is “relatively far advanced” and that Anglo is nearing the end of the second stage of bidding, during which a preferred buyer will be identified. Although he previously aimed to have the divestment substantively complete by the end of 2025, he acknowledged that the timing will depend on financing conditions in a challenging diamond market. “I’m still hoping that it’s going to get done this year,” he said.
Structure of a Potential Deal
The sale is expected to result in a public-private partnership. Botswana has stated that it intends to increase its stake in De Beers, reflecting its role as a key production partner and the contribution of diamonds to its economy.
Angola has signalled it is targeting a 20 to 30 per cent stake. Paulo Tanganha, Angola’s national director of mineral resources, said majority ownership in luxury commodities would carry risk. “Taking the majority stake within luxury commodities is very dangerous because it depends on the market,” he said. “So to de-risk that, we have to have a portion that is sustainable for our economy.”
Tanganha added that “closed-door talks” were continuing with other diamond-producing countries, including Botswana, South Africa, and Namibia. “There is a saying, ‘Together we are stronger,’” he said. “That’s the way we are doing it. And if my neighbor is suffering, I also suffer. So we have to be together and fight together as a team.”
Namibia, which accounts for around a tenth of De Beers’ diamond production, is also considering a minority stake.
Market Dackdrop and Restructuring
The divestment forms part of Anglo American’s restructuring programme, announced in 2024. The miner has already sold its platinum and nickel interests and is seeking buyers for its steelmaking coal assets as it reshapes its portfolio.
The timing of the De Beers sale coincides with weaker conditions in the global diamond market. Anglo has warned it may need to write down the value of De Beers for a third consecutive year, reflecting subdued Chinese luxury demand and increased competition from laboratory-grown stones. US tariffs on India, a major diamond cutting and polishing hub, have also disrupted supply chains.
Wanblad acknowledged that some analysts believe Anglo is selling at a low point in the cycle, but said the process would proceed regardless. “We should really focus on the stuff that makes the best returns for our shareholders,” he said.
Leadership Comments on De Beers’ Future
Speaking at the Mining Indaba conference in Cape Town, former De Beers chief executive Gareth Penny, who is involved with one of the bidding groups, commented on the company’s future role within the diamond sector.
“The number one priority for me,” Penny said, “would be to see the reestablishment of De Beers as the real force that it used to be in the industry – the company that had the ability to spend $200 or $300 million a year behind marketing, that could carefully do the analysis and all the research in the four or five key markets and decide what the winning idea could be for this year, and then work together with its clients, with the producers, and the retailers in driving demand by that idea.”
He added that “the industry needs a big global leader, and that, in my view, needs to be De Beers.”
