Anglo American, which has an 85% stake in De Beers is exploring the full range of options to separate the business to set it up for success in unlocking full value from its new Origins strategy, its world-class assets and its iconic brand.
It said in a statement that this will provide both Anglo American and De Beers with a new level of strategic flexibility to maximise value for both companies’ shareholders.
This confirms a recent report by the Wall Street Journal (WSJ) that Anglo American was contemplating the sale of De Beers.
Anglo was said to have engaged in discussions with prospective buyers, including Gulf sovereign wealth funds and luxury houses, in recent weeks.
The recent underperformance of the diamond group can be attributed to the failure of the global diamond market to rebound as anticipated in terms of sales volumes and prices.
Meanwhile, De Beers said it fully remains focused on delivering its strategy and creating value in the interests of all its stakeholders.
“Today’s announcement from Anglo American opens up new possibilities under new ownership. But some things will not change,” said De Beers chief executive Al Cook.
“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 finalising our transformational agreement with the Government of the Republic of Botswana, who hold a 15% ownership interest in De Beers.”
He said that De Beers will later this month present its new strategy.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
