Botswana and the group leading the race to buy De Beers are close to agreeing on their future shares in the diamond miner. A deal could let Anglo American finally sell the business, Moneyweb reported.
People familiar with the talks said Botswana is likely to raise its stake from 15% to around 25%. They asked not to be named because the talks are private.
The exact details are not clear. The people said talks are still going on and no agreement has been finalised.
Anglo American, the consortium and the office of Botswana’s president all declined to comment.
The buyer is Global Diamond Consortium, known as GDC. It is led by Gareth Penny, a former chief executive of De Beers.
Botswana’s government said in July that Anglo American had picked GDC as its preferred bidder. GDC also includes Namibia and Angola, two of the world’s largest diamond producing countries.
Bloomberg reported in July that Anglo American had discussed selling De Beers for about $1 billion. That is a small part of what the company was once worth.
Reaching a deal with Botswana had been a hurdle for any sale. De Beers’ most important mines are in Botswana, and its government owns 15% of the company.
If the deal goes ahead, Botswana, Angola and Namibia would together own less than 50% of De Beers, the people said.
This would keep De Beers under the control of private investors. Some backers of the consortium had made this a condition, according to the report.
A larger but still minority stake would be a change from what Botswana President Duma Boko said before. Boko had said the country wanted majority control of De Beers.
Last month, Vice President Ndaba Gaolathe was asked how large a share the state wanted. “Whatever the number is, it is more than 15%,” he told Bloomberg TV.
For Anglo American, an agreement would allow the sale to move to its final stages. The process has dragged on for more than two years.
Anglo American has tried to sell De Beers since it turned down an approach of almost $50 billion from BHP Group in early 2024.
The sale has been slowed by a crisis in the diamond market. Anglo American has written down the value of De Beers three times in three years. In February, its value in the company’s books stood at $2.3 billion.
Diamond prices have fallen sharply. Sales were strong during the pandemic, but the industry weakened and was then hit by a collapse in Chinese luxury spending.
The growing popularity of man-made stones, trade tensions and sudden global political shifts have added to the pressure, according to the report.
The market has shown some signs of recovery in recent months. Bloomberg has reported that there will also be extra payments based on how the business performs after the sale.
Botswana also owns 50% of Debswana, its mining joint venture with De Beers. Debswana produces most of the country’s diamonds.
Source: this article is based on reporting by Moneyweb. Image: Moneyweb. Written with the help of AI and published by the Tzaneen Voice Business desk. See our Editorial Standards.
Anelisa Nkuna covers business and money news for Tzaneen Voice. Anelisa reports on the rand, fuel prices, interest rates, jobs, Eskom, Transnet, farming and company results. The aim is simple: explain what the numbers mean for household budgets, small businesses and workers in South Africa.