Anglo American in talks to sell De Beers for about $1 billion 

Anglo American Plc, a diversified global mining giant, is in talks to sell its majority stake in De Beers for about $1 billion, a sharp decline from the valuation once commanded by the world’s dominant diamond producer as the industry struggles through one of its toughest downturns. 

The mining company has been seeking a buyer for De Beers since defending itself against BHP Group’s nearly $50 billion takeover approach in 2024. Efforts to exit the business have been slowed by weak demand for diamonds, forcing Anglo to write down the value of De Beers three times in as many years. The latest impairment reduced the unit’s carrying value to $2.3 billion in February. 

Gareth Penny-led group emerges as bidder

Earlier this month, Anglo American had selected a consortium led by former De Beers Chief Executive Gareth Penny as its preferred bidder, according to people familiar with the discussions.

Under the proposed deal, the Global Diamond Consortium, led by Penny and backed by Namibia, Angola and several of the world’s largest diamond traders, would pay about $1 billion for Anglo’s 85% stake, according to people familiar with the discussions. The structure calls for an upfront payment of about $750 million, followed by another $250 million at a later stage. 

The agreement could also include additional payments tied to De Beers’ future financial performance, the people said, speaking on condition of anonymity because the negotiations are private. 

Spokespeople for Anglo and Penny’s consortium declined to comment. The talks remain ongoing, and there is no certainty that a final agreement will be reached or completed on the current terms.

Botswana seeks bigger diamond stake

As part of the proposal, the consortium would inject about $500 million into De Beers to support the business after the acquisition. 

Any transaction would also require agreement with Botswana, which owns a 15% stake in De Beers and a 50% interest in Debswana, the joint venture that accounts for most of the country’s diamond production. Botswana has long sought a larger ownership position in De Beers. While President Duma Boko previously called for majority control, officials have indicated the government may accept a larger minority stake. 

De Beers sources about 70% of its diamonds from Botswana and also operates mines in Canada, Namibia and South Africa. 

The sale comes as the global diamond industry faces prolonged pressure from weaker Chinese luxury demand, growing competition from lab-grown diamonds and broader geopolitical uncertainty. Those challenges have pushed natural diamond prices sharply lower after a brief sales rebound during the pandemic. 

Anglo reviews diamond business future

Founded in 1888, De Beers remains one of the world’s largest diamond companies, with operations spanning exploration, mining, retail and diamond marketing.

Anglo acquired full control of De Beers in 2011 after buying the Oppenheimer family’s stake in a deal that valued the business at nearly $13 billion. In 2001, when Anglo and the Oppenheimers took De Beers private, the company was valued at more than $18 billion. 

Penny, who led De Beers from 2005 to 2010, is seeking to return the company to its core business of mining and marketing natural diamonds after steering it through the global financial crisis.

Founded in 1917, Anglo American is one of the world’s largest diversified miners, producing copper, iron ore, platinum group metals, steelmaking coal and crop nutrients across operations in Africa, the Americas and Australia.