Botswana’s President Duma Boko says his government is aiming to finalise a deal to acquire majority control of De Beers by the end of October.
- Botswana aims to finalize acquisition of majority control in De Beers by October.
- Anglo American Plc is seeking to divest its 85% stake in De Beers due to market restructuring.
- Botswana is discussing financing options for the deal, including partnerships with interested parties.
- De Beers’ value was re-evaluated to $4.9 billion amid decreased natural stone market demand.
Botswana’s President Duma Boko says his government is aiming to finalise a deal to acquire majority control of De Beers by the end of October, even as talks continue with Anglo American Plc and other interested buyers.
Anglo, which owns 85% of the diamond giant, is seeking to divest its stake as part of a restructuring launched 16 months ago.
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The London-listed miner has delayed the sale amid a prolonged slump in the natural-stones market, pressured by rising demand for cheaper lab-grown alternatives, according to Bloomberg.
Anglo wrote down De Beers’ value to $4.9 billion in February and confirmed it remains in discussions with Botswana, which already holds a 15% stake.
Financing the takeover
To finance the deal, Botswana is in talks with potential partners, including Oman’s sovereign wealth fund, according to Boko.
Diamonds remain the bedrock of Botswana’s economy, accounting for 80% of exports and about a third of state revenue.
But a sharp downturn in prices has pushed the nation into crisis, with S&P Global Ratings forecasting a second consecutive year of economic contraction in 2025.
The slowdown has already squeezed government finances, prompting Boko, elected in October, to declare a public health emergency in August.
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Anglo, meanwhile, has received approaches from other potential bidders, including two former De Beers chief executives, and is also considering an IPO or demerger of the business.
For Botswana, majority ownership would mean greater influence across the global diamond supply chain and an opportunity to reinforce the value of natural stones.
Boko urged consumers to shun synthetic diamonds for engagement rings and weddings, arguing that effective marketing will be crucial to a price recovery.
