Anglo American Nears Sale of De Beers Diamond Business

Anglo American plc is in the final stages of selling its 85% stake in De Beers as part of a strategic restructuring to focus on copper-led growth. This overhaul includes the divestment of nickel and steelmaking coal businesses and a pending merger with Teck Resources, which currently awaits regulatory approval from China.

Reports indicate the Global Diamond Consortium (GDC), led by former De Beers CEO Gareth Penny and including Angola, Namibia, and major traders, has emerged as a preferred bidder. The proposed deal is valued at approximately $1 billion—consisting of $750 million upfront and $250 million later—alongside a $500 million capital injection into De Beers. This valuation represents a steep decline from the $13 billion value assigned to the business in 2011 and falls below the $2.2 billion book value.

CEO Duncan Wanblad has declined to confirm the $1 billion figure, stating that negotiations remain competitive and the company is not currently exclusive with any consortium. The sale is complicated by the requirement for an agreement with the Government of Botswana, which holds a 15% stake in De Beers and is seeking to increase its ownership.

The divestment follows a severe industry downturn driven by the rise of lab-grown synthetic diamonds, trade tensions, and a collapse in luxury spending within China.