Anglo American has reportedly chosen a preferred bidder for De Beers, its diamond business, though this development was announced by Botswana officials and not Anglo American directly. The sale is part of Anglo's broader restructuring efforts initiated in May 2024 to fend off a takeover bid from BHP Group. De Beers has been valued at significantly less than its prior worth, dropping from $9.2 billion in early 2023 to $2.3 billion earlier this year, reflecting a challenging diamond market.
Gareth Penny, former De Beers CEO, is leading a consortium that is currently seen as the frontrunner in the acquisition. His bid is supported by major diamond trading companies and aims to refocus De Beers on natural diamond mining and marketing. Other potential bidders, including those linked to the governments of Namibia and Angola, as well as Bruce Cleaver, have reportedly withdrawn their interest due to unfavorable market economics and difficulties in securing financing.
The process has been complicated by Botswana's ambition to gain majority control of De Beers, where it currently holds a 15% stake. De Beers CEO Al Cook stated on June 17, 2026, that a sale could be finalized in "weeks rather than months," emphasizing the advanced stage of negotiations. Cook also highlighted the decreasing global supply of diamonds due to mine closures and the lack of new commercial discoveries in the 21st century.
The diamond industry faces several challenges, including a slump in prices, the rise of synthetic diamonds, weakening Chinese luxury demand, and increased competition from established luxury brands like LVMH, Tiffany & Co, and Richemont. These factors have made it difficult for potential buyers to justify a multibillion-dollar acquisition. The auction for De Beers has been described as a "dog show" by some, reflecting the complexity and difficulty in valuing the company given its unique joint ventures with the governments of Botswana and Namibia.
The deadline for binding offers was initially in mid-April but was extended. While Gareth Penny’s consortium appears to be in the lead, other bids had previously included entities supported by a Qatari investment fund and Israeli businessman Nir Livnat, who faced challenges in securing financing amid regional geopolitical instability.
