The Global Diamond Consortium (GDC), headed by former De Beers chief executive Gareth Penny, is in the closing stages of completing its purchase of De Beers after fending off rival bids, with the group aiming to bring customers back to natural diamonds and away from synthetic gems, according to Bloomberg.
“We want to find new, innovative ways to create demand for diamonds and we believe we have a lot of good strategies for that,” a GDC representative said, noting the market challenges revolve around consumer demand and addressing synthetics.
“This is about effective marketing because this is a demand side problem.”
The takeover comes as the diamond industry slowly emerges from its deepest crisis, hammered by a slump in Chinese luxury spending and an explosion in low-cost supply of chemically identical synthetic stones from China and India.
Crucially, the GDC won the support of Botswana.
The country will double its De Beers stake to 30%, while other producing countries Namibia and Angola will also invest.
Oman and some key customers are in the group, while luxury house Richemont and retailer Signet Jewelers are in talks to join.
Anglo American has been looking to sell De Beers since fending off an almost $50 billion approach from BHP Group in early 2024, but the process has been stymied by the market crisis.
Anglo has taken three impairments on the business in just three years, lowering its carrying value to $2.3 billion in February. Bloomberg previously reported Anglo is discussing a valuation of about $1 billion, with more payments based on future performance.
“It’s a process with Anglo American and we are trying to get things finalized as quickly as we can,” the GDC representative said.
Mathew Nyaungwa, Editor-in-Chief, Rough & Polished
