Botswana will double its stake in De Beers from 15% to 30% as part of Anglo American’s sale of its interest in the diamond producer to a consortium of investors, President Duma Boko announced on Monday.
The Botswana government’s support is pivotal to completing the transaction, as the country holds a right of first refusal on Anglo American’s shareholding. Once the deal is concluded, Botswana will become De Beers’ largest individual shareholder, strengthening its influence over the company’s strategic decisions.
Anglo American placed De Beers up for sale in 2024 as part of a broader restructuring, against a backdrop of falling natural diamond prices and rising demand for synthetic stones. In July, a government official revealed that the company had selected the Global Diamond Consortium as its preferred buyer.
Led by former De Beers chief executive Gareth Penny, the consortium brings together investors and companies linked to the diamond value chain. Among the potential participants in the negotiations are Swiss luxury group Richemont, owner of Cartier, as well as rough diamond buyers Diarough, Pluczenik and Grandview Klein Diamonds, and jewellery manufacturer Signet. India’s Rosy Blue India is reported to have since withdrawn its interest.
According to Tobias Kormind, chief executive of jewellery brand 77 Diamonds, the entry of major industry players could help revive demand for natural diamonds in a market where luxury brands and watchmakers have gained greater prominence among consumers.
Anglo American confirmed it will continue working with Botswana, other governments and the Global Diamond Consortium to finalise binding transaction documents. Gareth Penny stated that the consortium is in negotiations with the governments of Botswana, Angola, Namibia and Oman, with the aim of incorporating them into De Beers’ ownership structure.
For President Boko, the investment in De Beers also represents an opportunity to access advanced technologies through Element Six, the group’s subsidiary specialising in the production of synthetic diamonds for industrial and technological applications.
In this context, Boko disclosed that Element Six is expected to participate in a synthetic diamond manufacturing facility valued at US$600 million, planned for the United States. The project, previously reported by Reuters, comes amid growing demand for materials used in high-performance computing systems and large-scale data centres.
Boko added that the US government has expressed interest in establishing a partnership with Element Six in the development of synthetic diamond technologies. According to the President, there is an understanding with US Secretary of Commerce Howard Lutnick for the company to form the basis of a new technology partnership between the two countries.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/?p=560461
