GABORONE (Realist English). Anglo American Plc, which owns 85% of De Beers, has selected a preferred buyer for its diamond business. The buyer is the Global Diamond Consortium (GDC), led by former De Beers CEO Gareth Penny.
This was announced on July 17 by Botswana’s Minister for Presidential Affairs, Defence and Security, Moeti Mohwasa, while addressing parliament.
The deal, which is expected to be completed in the fourth quarter of 2026, will be one of the largest in the mining industry in recent years.
Consortium Members: Betting on a Former Chief
The Global Diamond Consortium was chosen from three finalists in a competitive process organised by Anglo American. Its members include:
- Gareth Penny — former CEO of De Beers, now chairman of asset manager Ninety One;
- governments of diamond‑producing countries, including Angola and Namibia, whose participation Botswana welcomes;
- a Qatari investment fund;
- Israeli businessman Nir Livnat.
According to Reuters sources, two consortia reached the final round — out of six bidders in 2025. Another former De Beers CEO, Bruce Cleaver, who led one of the competing groups, dropped out, saying he could not justify the deal’s economics under current market conditions.
Botswana’s Key Role: Right of First Refusal
The Botswana government, which owns 15% of De Beers and 50% of the joint venture Debswana, has a right of first refusal when Anglo American sells its stake.
Minister Mohwasa stressed that the country has “full freedom” to choose its next steps:
- join the Global Diamond Consortium as a partner;
- exercise the right of first refusal independently;
- bring in a third party to co‑purchase.
The Botswana government is currently working with financial advisers to assess the optimal deal structure. For a country where diamonds account for about 80% of export earnings and a third of GDP, this decision is critical. Mohwasa stressed the need to bring in a buyer with “deep pockets,” serious mining experience, and a reliable long‑term turnaround plan.
Price Collapse and Synthetic Competition
Anglo American announced its intention to sell De Beers in May 2024. The decision was part of a major restructuring designed to fend off a takeover attempt by BHP Group. Since then, the company has been simplifying its business, focusing on iron ore and copper mining.
Two key factors influenced the sale decision:
- a collapse in natural diamond prices — amid falling demand and global economic uncertainty;
- the growing popularity of synthetic diamonds, which are becoming increasingly affordable and are squeezing natural stones out of the market.
Since 2024, Anglo American has twice written down the value of De Beers: a $1.6 billion impairment in 2024 and another $2.9 billion in early 2026.
The closing of the deal, according to Minister Mohwasa, is expected in the fourth quarter of 2026 and is subject to a number of conditions, including approval by the Botswana government. A spokesman for Anglo American confirmed that the sale process is ongoing and that the company will provide updated information in due course.
The recovery of the global diamond market remains uncertain. As observers note, the new owners are betting that natural diamond prices will return to growth in the long term.
However, in the coming years, they will face a difficult challenge: restoring profitability to a business that became loss‑making under Anglo American and withstanding pressure from synthetic diamond producers.
