Confirming support for the deal, the president of Botswana said the country will double its holding in De Beers to 30% under the terms of Anglo American’s proposed sale of its stake in the diamond producer to a consortium of investors.
A De Beers Group sign is displayed on the exterior of the diamond producer’s headquarters in Gaborone, Botswana. Image credit: Reuters/Stringer
Botswana’s backing is key to the sale progressing, as the country has the right of first refusal on Anglo American’s stake. Under the deal’s terms, it would become De Beers’ single largest shareholder, President Duma Boko said.
Anglo American put De Beers up for sale in 2024 as part of a wider restructuring amid falling diamond prices and growing demand for synthetic stones. A Botswanan government official said in July the miner had chosen the Global Diamond Consortium as the preferred bidder.
Boko said Botswana supported the sale to the consortium, led by former De Beers CEO Gareth Penny.
“This means that, when this transaction is complete, Botswana's shareholding in De Beers will double from the current 15% to 30%,” Boko said in a speech in parliament.
“Botswana will become the single largest shareholder in De Beers, and with that comes greater influence in the strategic decisions for decades to come.”
Boko said the governments of Namibia and Angola would participate in the De Beers transaction.
New chapter
Swiss luxury group Richemont, owner of Cartier, is among companies in talks to join the Global Diamond Consortium.
Two people — a De Beers sightholder, or rough diamond buyer, and a diamond industry insider — told Reuters that sightholders Diarough, Pluczenik and Grandview Klein Diamonds, as well as jewellery maker Signet, are also in talks.
Indian company Rosy Blue India, which had previously been involved, has now withdrawn interest, one person said.
“De Beers once taught the world to desire diamonds. Its prospective owners now face the immense task of rekindling that desire at a time when luxury fashion houses and watchmakers have completely stolen the consumer spotlight,” said Tobias Kormind, managing director of jewellery brand 77 Diamonds.
“Bringing together heavyweights like Signet, Richemont, and major sightholders like Pluczenik and Diarough means key players across the supply chain are uniting to back a natural diamond recovery.”
Anglo American said it would continue to work with Botswana, other governments, and the Global Diamond Consortium to agree binding transaction documents.
Penny said the consortium was working with the governments of Botswana, Angola, Namibia, and Oman towards becoming co-owners of De Beers, and was focused on finalising agreements with Anglo as soon as possible.
“Together, we believe we can create a new chapter for this iconic business, one defined by strategic clarity between producing countries and the wider value chain, stronger consumer connection, and sustained growth in demand for natural diamonds,” Penny said in a statement.
Investing in tech
Botswana’s stake in De Beers gives it exposure not only to natural diamonds but also to advanced technology through Element Six, the miner’s synthetic diamond business, Boko said.
“Our investment in De Beers is not just an investment in natural diamonds. It is an investment in technology,” he said.
Boko said that Element Six will participate in a planned $600m synthetic diamond plant that Reuters reported in January will be built in the US.
Demand for synthetic diamonds used in high-performance computing is likely to rise as artificial intelligence and large-scale data centres expand, the president added.
The US government had asked Element Six to partner on synthetic diamond technology, Boko said.
He said he had agreed with US Commerce Secretary Howard Lutnick that the company should form the core of a new technology partnership between Botswana and the United States.
