Angola seeks 10% stake in De Beers under Anglo’s proposed exit

Kitco Media
By Reuters
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Reuters
Angola seeks 10% stake in De Beers under Anglo’s proposed exit teaser image

Angola is seeking a 10% holding in De Beers as part of Anglo American’s (LON: AAL) proposed sale of its majority stake in the diamond producer, a mines ministry spokesperson told Reuters on Friday.

Anglo American put De Beers, which operates and explores for diamonds in Botswana, Namibia, Angola, South Africa and Canada, up for sale in 2024 as part of a broader restructuring amid falling diamond prices and growing competition from synthetic stones.

Botswana, which had the right of first refusal on Anglo American’s stake, on Monday backed the deal, saying it will double its holding to 30%.

President Duma Boko said that while Botswana would become De Beers’ single largest shareholder, the governments of Namibia and Angola would also participate in the transaction.

Angola’s mines ministry spokesperson was confirming a report in weekly newspaper Novo Jornal.

The report said Namibia was also seeking a 10% stake in De Beers. Namibian officials did not immediately respond to requests for comment.

Private buyers interested

Anglo American owns 85% of De Beers, the sale of which has also attracted interest from private buyers.

Swiss luxury group Richemont (SWX: CFR), owner of Cartier, is among firms in talks to join the Global Diamond Consortium, which Botswana said was the preferred bidder.

Richemont CEO Nicolas Bos said on Friday that the company sees the importance of natural precious stones for its collection, but declined to comment on potentially joining the group to buy De Beers.

In addition to Botswana, Angola and Namibia, the Global Diamond Consortium has said it is also working with Oman towards becoming co-owners of De Beers.

Anglo American said on Monday it would continue to work with the African nations and the consortium towards agreeing binding transaction documents.

(Reporting by Olivia Kumwenda-Mtambo;Additional reporting by Brian Benza in Botswana, Miguel Gomes in Luanda and Nyasha Nyaungwa in Windhoek;Writing by Sfundo Parakozov;Editing by Alexander Winning, Kirsten Donovan)

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