Luxury goods group Richemont and US jewellery retailer Signet Jewelers are in talks to join the group in line to buy De Beers. This is according to five people who know about the talks, Moneyweb reported.
The two companies are talking to Global Diamond Consortium, or GDC. The group is led by Gareth Penny, a former chief executive of De Beers.
The people asked not to be named because the talks are private. Some of them said the negotiations are advanced. They also said there is no promise that Richemont and Signet will join.
GDC and Signet declined to comment. Richemont did not respond to requests for comment.
GDC became the preferred bidder for De Beers in July. The diamond miner is being sold by Anglo American.
The consortium is also in talks with the government of Botswana, which already owns part of De Beers. Botswana wants to raise its share to about 25%, Bloomberg reported on Tuesday.
Namibia and Angola are already part of GDC. Both countries are among the largest diamond producers. Some of the biggest diamond manufacturing companies have also joined the group.
It is not clear how big a stake Richemont and Signet want. The three Southern African states will hold large shares, and other private investors have already signed up. This means the two companies would likely own fairly small parts if a deal is reached.
Richemont is one of the world’s leading luxury goods groups. It is controlled by South African billionaire Johann Rupert. Its brands include Cartier, Vacheron Constantin and Van Cleef & Arpels. Jewellery makes up about three quarters of its business.
Signet is one of the biggest jewellery retailers. It owns the Zales, Jared and Kay chains.
The support of the two groups will be seen in the industry as good news for natural diamonds, the report said. For years, the diamond industry has tried to get luxury retailers to help promote natural stones.
The sector is slowly coming out of one of its worst crises. Sales were strong during the pandemic, but the market was already weakening afterwards. A fall in luxury spending in China then caused prices to drop sharply.
Lab-grown diamonds have also become more popular. Trade tensions and sudden political changes around the world have added to the pressure on the industry.
Anglo American has been trying to sell De Beers since early 2024. That was when it fought off a takeover offer of almost $50 billion from BHP Group.
The sale has been slowed by the crisis in the diamond market. Anglo has written down the value of De Beers three times in three years. In February, it cut the carrying value of the business to $2.3 billion.
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.