Botswana seeks to secure control of De Beers by October
Botswana is accelerating efforts to secure control of De Beers as parent company Anglo American (LON: AAL) moves forward with plans to divest its 85% stake in the diamond giant.
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.
“We are more than ready for the transaction and we’ve said the transaction must be concluded by the end of October,” Boko told Bloomberg News. “It’s a matter of economic sovereignty for Botswana.”
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 chopping 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 ($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.
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2 Comments
Michael
De beers should have to pay 500 trillion dollars to the country for all that they have taken from the land in all the years!!
Jessica Smith
De Beers have had control of the diamond industry for years. I think with fair trade incentives for business that they should not have the majority stake in a country that they does not govern. For years this has been going on. De Beers also has a lot of influence in the Sovereign wealth of the UK. The African Nationals are awake and tired. They should have been investing in the Botswana instead of sourcing all of their minerals from the country and not building homes, hospitals. jobs and Education for the people. to make the country sustainable to function as a whole. It rest on the government and its citizens to speak up and to build like the Western and Europeans.