Anglo American has reportedly selected a consortium led by former De Beers Chief Executive Officer Gareth Penny as the preferred bidder for the diamond giant, according to Botswana's President Mokgweetsi Masisi. The announcement was made during a public address on Thursday, July 17, 2026, in Gaborone. This move follows Anglo American's radical restructuring plan aimed at fending off a takeover attempt by BHP Group in 2024. The sale of De Beers is a key part of this restructuring, which has also seen Anglo exit platinum mining and agree to sell its coal operations.
The sale process for De Beers has been complicated by several factors, including one of the diamond industry’s deepest crises on record and Botswana's ambitions for greater control over the business. Botswana currently owns a 15% stake in De Beers and is responsible for three-quarters of its diamond production. President Masisi has previously called for majority control, though the government may ultimately settle for doubling its current stake. The company's valuation has seen a significant drop, from $9.2 billion in early 2023 to just $2.3 billion earlier this year, reflecting the industry downturn and De Beers' complex structure, which involves major joint ventures with the governments of Botswana and Namibia.
Gareth Penny, who was CEO of De Beers for five years and spent 22 years with the company until 2010, is considered an ideal candidate due to his deep understanding of the business, strong marketing background, and good relationships with key stakeholders like Botswana and Namibia. His consortium, reportedly backed by some of the world's largest gem traders, aims to refocus De Beers on natural stones. The deal is expected to be sealed in a matter of weeks and is anticipated to involve a public-private partnership. Reports indicate that other prospective bidders, including those linked to the governments of Namibia and Angola, and private consortiums led by Michael O'Keeffe and Nir Livnat, have stepped away or struggled with financing, leaving Penny's group as the last significant bidder.
The sale will likely see Anglo American sell De Beers for close to its current market value of $2.3 billion, but potentially with additional financial arrangements. Analysts suggest that Penny might be taking his time to secure the best possible deal, as Anglo American appears to be struggling to offload the asset at a premium. The current environment presents a challenge for any buyer, requiring underwriting not just a cyclical recovery but also an industry attempting to redefine itself amidst a crowded luxury market and the increasing presence of synthetic diamonds. Angola, for its part, remains in talks about a potential investment, seeking a stake large enough to influence strategy rather than a controlling interest.
