Tacy president Chaim Even-Zohar said that Anglo American probably overpaid by at least $1 billion when it acquired an additional 40 percent stake in De Beers earlier this year.
Anglo acquired the Oppenheimer family shares for $5.2 billion to lift their equity in the diamond giant to 85 percent.
According to Even-Zohar it should have paid $4.2 billion but could not give reasons in an interview with Rough&Polished.
He also said that Anglo had the right ingredients to take De Beers to another level of success.
“I think that management made a great effort to justify the purchase and they will be highly motivated to make the success out of De Beers,” Even-Zohar said.
“They are not new to the diamond business. Anglo has known De Beers all its life and they do have the skills, the know-how to take it forward.”
He said the new Anglo chief executive would have to make changes to help the company clear or reduce its net debt of $10 billion.
“I hope they will not touch De Beers,” said Even-Zohar.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
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