Anglo draws Botswana into $5B De Beers sale talks

Anglo American (LSE: AAL) CEO Duncan Wanblad said Botswana’s government will join negotiations with one or two shortlisted bidders for De Beers, as the mining giant moves to sell its 85% stake in the diamond producer.

The sale process to include Botswana, which owns 15% of De Beers through its Debswana joint venture, may conclude within six months, Wanblad told the Financial Times on Thursday at the the publication’s annual Metals & Mining Summit in London. The CEO didn’t rule out spinning off De Beers if negotiations fail. 

The government’s participation marks a shift in tone after President Duma Boko criticized Anglo’s handling of De Beers and said his administration could run it more effectively. De Beers swung to a $189 million loss in the first half of 2025 from a $300 million profit a year earlier amid weak diamond prices, adding pressure for a deal.

Anglo values De Beers at about $5 billion, though analysts at UBS estimate the sale could generate between $3 billion and $4 billion, including deferred payments, given challenging market conditions. 

The divestment is part of a sweeping restructuring strategy as it prepares for a proposed $50-billion merger with Teck Resources (TSX: TECK.A, TECK.B; NYSE: TECK). Anglo intends to relaunch its sale process of Australian coking coal assets early next year, after Peabody Energy (NYSE: BTU) withdrew from a $3.8-billion deal. 

Pan-African consortium

Angola’s state-owned Endiama has reportedly bid for a minority stake in De Beers, proposing a pan-African consortium of diamond-producing nations as co-owners. The two companies have partnered since 2022, when they signed and later expanded exploration and processing agreements. Their collaboration led to Angola’s first major kimberlite discovery in more than 30 years this past August. 

Wanblad said Anglo was under no obligation to accept any offer but welcomed growing regional interest from Angola and Botswana. 

De Beers has also drawn interest from at least six consortia, including billionaire Anil Agarwal, Indian firms KGK Group and Kapu Gems, and Qatari funds.

Feriel Zerouki exit

In a separate development, De Beers executive Feriel Zerouki announced she will step down as chief trade and industry officer and leave the executive committee at the end of October.

Zerouki, who joined De Beers in 2005, played a leading role in advancing ethical sourcing and transparency across the diamond supply chain.