GABORONE, July 29 – Mining giant Anglo American Plc is in discussions to sell its De Beers diamond business in a deal valued at around $1 billion, according to a Bloomberg report, marking a sharp decline in the valuation of one of the world’s most iconic diamond companies.
The potential transaction comes as Anglo American continues to streamline its portfolio following its successful defence against an almost $50 billion takeover approach from BHP Group in early 2024.
According to Bloomberg, Anglo has been seeking a buyer for De Beers since announcing plans to divest the business as part of a broader restructuring strategy. However, efforts to complete a sale have been complicated by a prolonged downturn in the global diamond market, which has weakened demand and significantly reduced valuations across the industry.
The challenging market conditions have forced Anglo American to repeatedly reduce the carrying value of the business. The mining group has recorded three impairment charges on De Beers over the past three years, lowering the unit’s book value to $2.3 billion as of February.
The challenging market conditions have forced Anglo American to repeatedly reduce the carrying value of the business. The mining group has recorded three impairment charges on De Beers over the past three years, lowering the unit’s book value to $2.3 billion as of February.
A sale at approximately $1 billion would represent a substantial discount to De Beers’ current carrying value and a dramatic decline from the business’s historical worth. Once regarded as the dominant force in the global diamond industry, De Beers controlled much of the world’s diamond trade for decades through its near-monopoly position.
The proposed divestment forms part of Anglo American’s broader strategy to focus on higher-return assets while simplifying its business portfolio. The company has been reshaping its operations following pressure from investors and the attempted acquisition by BHP, which prompted a review of its asset base.
While discussions are ongoing, neither the potential buyer nor the timing of a possible transaction has been disclosed.
The outcome of the negotiations is expected to be closely watched by investors and the wider mining industry, as it could signal how depressed conditions in the global diamond market are influencing valuations of one of the sector’s best-known assets.
