Botswana to double stake in diamond miner De Beers
Africa’s largest diamond producer by volume is grappling with falling prices and competition from cheaper lab-grown stones.
Botswana’s President Duma Boko announced that his country will double its stake in De Beers to 30 percent, potentially leading to Anglo American Plc's exit from the diamond mining company. Botswana has long relied on De Beers as a cornerstone of its economy. The increase in ownership is a crucial step in a takeover bid led by former De Beers CEO Gareth Penny, according to Bloomberg.
Botswana will become the largest shareholder in De Beers, giving the nation greater influence in strategic decisions. The African nation's most significant diamond mines are located within Botswana and are managed through a 50/50 joint venture with Debswana. The Global Diamond Consortium, headed by Penny, emerged as the company's preferred bidder for De Beers last July.
However, securing support from Botswana was essential for the deal's success. Boko emphasized that this marks a new chapter in Botswana's diamond story. Anglo American is selling its 85 percent interest in De Beers as part of a restructuring announced in May 2024, amid a takeover attempt by BHP Group.
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- Botswana Agrees To Double De Beers Stake, Clearing Path for Anglo’s Exit businessoffashion.com
