Anglo American Plc is reportedly in discussions to sell its De Beers diamond business in a transaction valued at approximately $1 billion, according to a report by Bloomberg, marking a significant reduction in the valuation of one of the world’s most recognised diamond companies.
The potential sale comes as Anglo American continues to reshape its portfolio following a period of strategic review triggered by investor pressure and an unsuccessful takeover attempt by mining rival BHP Group in 2024. The company has been seeking to concentrate on assets it considers central to its long term growth strategy, including commodities linked to global energy transition and industrial demand.
De Beers, which has played a central role in the global diamond industry for more than a century, has been at the centre of Anglo American’s restructuring efforts. The company acquired majority ownership of De Beers in the early 2000s and currently owns approximately 85 percent of the business, with the Government of Botswana holding the remaining stake.
The reported discussions come at a challenging time for the diamond sector. Global demand for natural diamonds has weakened in recent years amid changing consumer preferences, competition from laboratory grown diamonds and broader economic pressures affecting luxury markets. These conditions have contributed to declining valuations across the industry.
Botswana, which is home to some of the world’s most significant diamond resources, has a particularly important relationship with De Beers through the long standing partnership between the government and the company’s joint venture, Debswana Diamond Company. The partnership has historically been a major contributor to Botswana’s economy, supporting public revenues, employment and social development programmes.
The potential transaction therefore carries significance beyond corporate restructuring. Any change in ownership would be closely observed across Southern Africa, where diamonds have shaped economic development trajectories, infrastructure investment and government revenue models for decades.
According to Bloomberg, Anglo American has been seeking a buyer for De Beers as part of its wider strategy to simplify its business structure. However, completing a transaction has proven challenging due to weak market conditions and uncertainty surrounding future demand for mined diamonds.
The company has reduced the recorded value of De Beers through a series of impairment charges over recent years. Anglo American reported that the carrying value of the business stood at approximately $2.3 billion as of February, meaning a sale at around $1 billion would represent a substantial discount to its current book value.
Founded in 1888, De Beers has historically held a dominant position in the global diamond trade and has been closely associated with the development of diamond mining in countries including Botswana, South Africa and Namibia. Over time, its influence has declined as the industry has become more competitive and consumer markets have evolved.
For African diamond producing countries, the future of De Beers raises broader questions about resource ownership, value creation and the role of international mining companies in the continent’s economies. While partnerships with global mining firms have generated significant economic benefits, governments across Africa have increasingly focused on securing greater local participation, downstream value addition and stronger linkages between natural resources and domestic industrial development.
The reported discussions remain ongoing, and neither a prospective buyer nor a completion timeline has been disclosed. Anglo American has not confirmed that an agreement has been reached.
Any potential sale would represent a major transition for a company that has long been synonymous with the global diamond industry. It would also reflect wider changes taking place across mining markets, where companies are reassessing portfolios amid shifting commodity demand, evolving investment priorities and changing expectations around the ownership and management of Africa’s natural resources.
