LACKING LUSTRE: Coal has been Anglo’s better friend as diamonds nosedive
Anglo American is struggling to find a suitor for the legendary De Beers, which may go for a song in a fire sale.
Anglo American faces difficulties in finding a buyer for De Beers, which could be sold at a significant discount. Coal, once considered a toxic asset, has proven to be a valuable commodity for the company, enabling it to sell its steel-making coal operations in Australia to Dhilmar for up to $3.785-billion. Despite the improved coal prices, Anglo received a fair price for the assets, as the market had anticipated a more substantial increase in deal terms.
Meanwhile, the natural diamond market continues to struggle, with lab-grown diamonds undercutting prices and consuming consumer demand. Anglo's diamond producer De Beers has seen its sales fall by 32% in the first six months of the year, and the company may need to sell it for as little as $1-billion, down from the $19.7-billion it fetched when it went private in 2001.
Written by urgent.news from Daily Maverick's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
