The Government of Botswana is close to reaching an agreement with the Global Diamond Consortium (GDC), the consortium bidding to acquire diamond producer De Beers, under terms that would allow the country to increase its shareholding in the company from the current 15% to approximately 25%, according to Bloomberg, which reported the development on Tuesday (13).

Citing sources familiar with the negotiations, the agency said the parties are nearing an understanding on the future distribution of the company’s capital, which could remove one of the main obstacles to Anglo American’s sale of its stake in De Beers.

Anglo American currently controls 85% of De Beers, with the remaining 15% held by the Government of Botswana. Should the agreement be finalised on the terms under discussion, the state’s shareholding would rise by around 10 percentage points, strengthening the country’s position in the company’s ownership structure.

The Global Diamond Consortium, led by Gareth Penny, a former chief executive of De Beers, was identified in July as the preferred bidder in the acquisition process. However, the definition of Botswana’s stake — the country hosts several of the company’s principal mines — has continued to represent an obstacle to completing the transaction.

The consortium and the Botswana government are now close to reaching an understanding on their respective shareholdings, although negotiations remain ongoing and no definitive agreement has been confirmed.

The potential transaction forms part of Anglo American’s broader restructuring process, which placed De Beers up for sale in May 2024, at a time when the diamond sector is facing pressures linked to falling natural diamond prices and growing competition from synthetic diamonds.

The decision to divest the company is part of Anglo American’s strategy to reorganise its business portfolio, against a backdrop of shifting conditions in international commodity markets and mounting pressure on the profitability of the diamond industry.

Beyond Botswana, Angola and Namibia — two significant diamond-producing countries in Africa — have also expressed interest in the deal, as have potential private buyers.

A potential increase in Botswana’s shareholding could mark a significant step forward in the De Beers sale process, allowing the country to consolidate its position as a stakeholder in one of the world’s leading diamond companies.