Botswana’s president plans to finalise an agreement to acquire a majority stake in De Beers by the end of next month, while his government and other prospective buyers continue talks with the company’s controlling shareholder.
Anglo American Plc is seeking to sell its 85% stake in De Beers, which produces most of its diamonds in Botswana, as part of a restructuring process launched 16 months ago.
The London-listed miner has delayed the sale due to a prolonged downturn in the natural diamond market, which faces strong competition from lower-cost lab-grown alternatives.
While other buyers have shown interest, a deal with Botswana has yet to be finalised, Bloomberg reports.
A spokesperson for Anglo, which wrote down De Beers’ value to $4.9 billion in February, said the company “continues to engage” with Botswana “as our partner in De Beers.”
The government already holds the remaining 15% of the diamond company.
President Duma Boko said Botswana is also in discussions with Oman’s sovereign wealth fund and other parties to help finance a deal that would raise the state’s stake in De Beers above 50%.
“We are more than ready for the transaction, and we’ve said the transaction must be concluded by the end of October. It’s a matter of economic sovereignty for Botswana,” Boko stated.
Diamonds, which make up 80% of Botswana’s export earnings and roughly a third of government revenue, have long been the foundation of the country’s economy. A slump in gem prices is expected to push the economy into a second consecutive year of contraction in 2025, S&P Global Ratings said, after recently lowering Botswana’s long-term sovereign credit rating.
De Beers competes with Russia’s Alrosa PJSC as the world’s largest diamond producer. Eleven months ago, Omani state-backed fund Maaden International Investment LLC bought Alrosa’s stake in a diamond-mining venture in Angola.
Furthermore, Bloomberg reported in June that Anglo has received expressions of interest from potential buyers, including two former De Beers CEOs. While the miner is considering an initial public offering or a demerger of the unit, it prefers to complete a full sale.
Botswana seeks control of De Beers to gain more influence over the global diamond supply chain, particularly to highlight the value of natural diamonds, President Boko said.
Prices should likely recover, “but obviously it will also be a function of proper marketing and differentiation in the market,” he added.
Boko’s government is negotiating with the United States, the world’s largest consumer of natural diamonds, to lift tariffs on the gems. The president plans to meet Commerce Secretary Howard Lutnick to discuss the issue.
“I am confident that by the end of the year they would have achieved that,” Boko said.