Anglo American Nears $1 Billion De Beers Sale as Diamond Slump Crushed Valuation

Q: How will Botswana use its veto power to potentially intercept the billion-dollar De Beers buyout?

Botswana can use its veto power by invoking its pre-emptive rights, effectively giving it the ability to block Anglo American’s sale of its 85% stake in De Beers to Gareth Penny’s Global Diamond Consortium unless Botswana agrees to the terms or joins the deal. That means Botswana has several ways to intercept the buyout. It can exercise its right of first refusal and try to buy Anglo’s stake itself, either alone or with outside financing. It has been exploring support from the UAE and Oman, and has also discussed possible coordination with Namibia and Angola. It can also choose to participate alongside the preferred bidder and negotiate a larger ownership position rather than allow the sale to proceed unchanged. Botswana’s leverage is stronger than its 15% stake alone suggests. It is De Beers’ key state partner through Debswana, the 50-50 joint venture that operates the company’s most important Botswana mines, and the country supplies the majority of De Beers’ diamond output. Because of that central role, any buyer needs Botswana’s approval and long-term cooperation. Officials have said Botswana wants a stronger stake in De Beers, at one stage even signaling interest in majority control, though reports suggest it may settle for a bigger minority holding. In practice, Botswana is using its veto not simply to stop the sale, but to force a restructuring of the ownership terms so it gains more influence over De Beers’ future, including pricing, marketing and strategic direction.

3 articles · Updated · Bloomberg · Jul 29

$1 billion is the price Anglo American is discussing for De Beers, with the sale process now nearing a deal after months of difficulty.
The buyer is the Global Diamond Consortium, led by former De Beers CEO Gareth Penny, with terms calling for $750 million upfront and $250 million later.
Anglo has sought to exit De Beers since rebuffing BHP's nearly $50 billion approach in early 2024, but a deep diamond-market downturn stalled disposal efforts.
Three impairments in three years cut De Beers' carrying value to $2.3 billion in February, far below the $13 billion valuation implied when Anglo took full control in 2011.
Botswana, which owns 15% of De Beers, is still negotiating, underscoring the remaining hurdle to closing a deal for the former diamond monopoly.