Key Points
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Anglo is pursuing a trade sale of De Beers while preparing an IPO as a secondary exit strategy.
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Diamond markets are showing early signs of stabilizing after a prolonged downturn, boosting De Beers’ prospects.
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Botswana is in talks to increase its De Beers stake as Anglo advances to the next phase of the sale process.
Anglo American Plc is pressing ahead with plans to exit De Beers Group, even as it expresses confidence in the diamond producer’s long-term prospects as global markets begin to stabilize.
The mining conglomerate, which unveiled its half-year results on Thursday, said it’s actively pursuing two exit strategies for De Beers: a trade sale, which remains its preferred route, and a potential initial public offering (IPO).
Both options are being developed in parallel, with Anglo emphasizing its commitment to find “the right buyer on the right terms.”
“We are in a formal process with a credible set of interested parties,” Anglo CEO Duncan Wanblad said.
“A trade sale remains our preferred exit, but we’re also preparing for a capital markets process should that path become more viable for our shareholders.”
The government of Botswana, which holds a 15% stake in De Beers, is also in discussions to increase its shareholding, Wanblad confirmed.
Navigating a Turbulent Diamond Market
De Beers, long considered the crown jewel of Anglo’s portfolio, has faced rough waters in recent years as global demand for diamonds waned amid economic uncertainties and shifting consumer habits.
However, Anglo said it is beginning to see “early signs of stabilization” in the diamond market over the past six months.
Despite these headwinds, Wanblad stressed De Beers’ resilience, citing its world-class mining assets and marketing capabilities.
“This is an iconic business. With the right owners, we believe De Beers has significant upside potential as markets recover,” he said.
In the event of a slower recovery, De Beers has developed a response plan to protect cash generation and operational stability, according to the company.
Wanblad also pointed out the relevance of De Beers to Botswana and other countries where it operates, noting that stakeholder engagement remains a priority.
Venetia Mine Expansion a Key Asset
In South Africa, De Beers is advancing a major underground expansion at its Venetia mine in Limpopo province, aiming to extend the mine’s life well beyond 2040.
The project marks a critical investment in De Beers’ future production capacity as it transitions from opencast to underground operations.
“We’re fully engaged with stakeholders throughout this process,” Wanblad said. “Venetia remains one of the best diamond resources globally, and its expansion will be vital to De Beers’ future.”
While Anglo is optimistic about the trade sale process, the company is keeping its IPO option on standby. If the trade sale does not materialize under favorable terms, Anglo is preparing for a public listing that could include exchanges in London, Johannesburg, or New York.
“An IPO is more market-dependent and would likely be timed for early-to-mid next year, contingent on stronger diamond market conditions,” Wanblad noted.
“But the trade sale process is already making good progress, and we expect to enter the second round of negotiations in the coming weeks.”
If successful, Anglo anticipates finalizing a trade sale within six to nine months.
