Botswana is accelerating efforts to gain control of De Beers as parent company Anglo American (LSE: AAL) moves forward with plans to divest its 85% stake in the diamond giant, according to Bloomberg News.
President Duma Boko said his government intends to finalize a deal by the end of October, despite ongoing negotiations between Anglo and other potential buyers. He confirmed Botswana is in talks with partners, including Oman’s sovereign wealth fund, to help finance the deal.
The southern African country’s economic sovereignty is at stake and the government is ready to close a deal, Boko told Bloomberg News on Tuesday.
Securing a controlling stake would raise Botswana’s interest in De Beers above 50%. The company sources about 70% of its rough diamonds from the country, making the deal a strategic priority for Gaborone.
Adverse market
De Beers, the world’s leading diamond producer by value, has been on the block since May 2024, when Anglo announced it would sell the unit or consider an initial public offering (IPO). This decision came after the miner fended off a £39 billion (US$49 billion) takeover bid by Australian rival BHP (ASX: BHP) and launched a broad restructuring.
Anglo has since delayed the sale amid a prolonged slump in the natural diamonds market, pressured by rising demand for cheaper lab-grown alternatives.
The miner has twice cut De Beers’ valuation, most recently to $4.1 billion in February. In the first half, De Beers swung to a $189 million loss from a $300 million profit a year earlier as revenues fell 10% to $2 billion from $2.2 billion.
Shares in Anglo American gained 0.3% in London to £25.57 apiece on Tuesday afternoon, valuing the company at £30 billion.
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