British multinational mining company Anglo American has confirmed its plans to sell its diamond subsidiary, De Beers, publicly stating that De Beers will be “divested or demerged” from its portfolio. Anglo American currently holds 85 per cent of De Beers’ shares, the remaining 15 per cent is owned by the government of Botswana.
According to JCK, Anglo American CEO Duncan Wanblad, in an online investor presentation, announced that the sale is anticipated for finalization by the end of 2025. While Wanblad refrained from speculating on potential buyers, reports suggest interest from “luxury houses and Gulf sovereign-wealth funds.”
“There are a potential number of pathways. All of them are on the table at the moment,” he said. “How we [sell it] will be a journey. We have to look at a number of options, in terms of a trade sale, or a demerger, but it also has to be in conjunction with one of our most important stakeholders, which is the government of Botswana.”
The sale is not expected to hinder the company’s pending 10-year sales contract with the government of Botswana. Wanblad said, “Whatever happens as far as De Beers is concerned, in a new ownership structure or an independent company spun out of Anglo American, the relationship with the government of Botswana is an absolute key component to the success of that business. I don’t see any reason that the current agreement would change.”
In a statement, De Beers Group CEO Al Cook said, “Today’s announcement from Anglo American opens up new possibilities under new ownership. But some things will not change. We will continue to deliver value for all our stakeholders, including our partners in Botswana, South Africa, Namibia, Canada, Angola, and other countries. In particular, we look forward to finalizing our transformational agreement with the government of the Republic of Botswana.”
De Beers will unveil its new marketing strategy at this year’s JCK Las Vegas show.
