Botswana’s President Duma Boko said his government is pushing to conclude a deal to secure majority ownership of De Beers by the end of October, even as negotiations continue with Anglo American Plc and other potential buyers, Bloomberg reported.
Anglo American, which controls 85% of the diamond producer, has been seeking to divest its stake as part of a restructuring effort launched 16 months ago. The company has delayed the sale in response to a deep downturn in the natural-stones market, where demand has been hit hard by the growing popularity of cheaper lab-grown alternatives, Bloomberg reported.
In February, Anglo cut its valuation of De Beers to $4.9 billion and confirmed it is still in talks with Botswana, which already owns a 15% shareholding. To fund a controlling acquisition, President Boko said Botswana is in discussions with prospective partners, including Oman’s sovereign wealth fund.
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Diamonds remain the backbone of Botswana’s economy, making up 80% of exports and about one-third of government revenue. Yet a steep drop in prices has triggered an economic crisis, with S&P Global Ratings predicting a second straight year of contraction in 2025.
The slowdown has put heavy strain on state finances, prompting Boko, who was elected in October, to declare a public health emergency in August.
Anglo has also drawn interest from other potential buyers, including two former De Beers chief executives, and is weighing alternatives such as an IPO or a demerger of the business.
For Botswana, gaining majority control would strengthen its role in the global diamond supply chain and provide leverage to defend the appeal of natural stones.
President Boko has urged consumers to reject synthetic diamonds for engagement rings and weddings, stressing that robust marketing will be key to restoring prices.
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Image Credit: Polity
