Anglo American Selects Preferred Bidder for De Beers; Botswana Weighs Options

Anglo American has identified a preferred bidder for its majority stake in diamond giant De Beers, setting the stage for the government of Botswana to decide on its future involvement. Botswana, which already holds a 15% share in the company, is now assessing its options, which include exercising its right of first refusal on the sale.

The Preferred Bidder

Botswana’s Minister for State President, Defence and Security, Moeti Mohwasa, told lawmakers on Friday that a group named the Global Diamond Consortium was selected as the preferred bidder following a competitive process. While the minister did not disclose the members of the consortium, he noted that its proposal to include fellow diamond-producing nations Angola and Namibia was welcome.

Anglo American confirmed it is progressing with the sale process and will provide updates at the appropriate time, according to a company spokesperson. The transaction is expected to be finalized by the fourth quarter of 2026, pending conditions including approval from the Botswana government.

Botswana's Strategic Options

As a long-standing partner in De Beers, the government of Botswana holds significant influence over the final ownership structure. Minister Mohwasa stated that the country has "complete freedom" to proceed and is working with financial advisors to determine the most beneficial path forward.

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The government is currently evaluating several options:

• Partnering directly with the Global Diamond Consortium.
• Exercising its preemption rights to acquire the stake on its own.
• Exercising its rights in partnership with a different third party.

Context of the Sale

Anglo American put its stake in De Beers up for sale in May 2024 as part of a major corporate restructuring. The decision was driven by persistent challenges in the diamond market, including falling prices and increasing competition from lab-grown synthetic diamonds.

The sale has attracted widespread interest from both private and state-backed entities. Sources previously told Reuters that two consortia remained in contention, with potential bidders including the governments of diamond-producing countries, former De Beers CEO Gareth Penny, a Qatari investment fund, and Israeli businessman Nir Livnat.