Botswana "Could Buy De Beers Outright"
August 29, 25
(IDEX Online) - The government of Botswana could buy an additional stake in De Beers, or even acquire the business outright, according to a Financial Times (FT) report.
Anglo American is seeking buyers for its 85 per cent stake in loss-making De Beers (valued at around $4.9bn), as it focuses its efforts on copper and other more profitable assets.
Botswana, which owns the remaining 15 per cent, has hired the New York-based investment bank Lazard to advise on the possible acquisition of some or all of De Beers.
The news follows last week's announcement that Botswana had secured a $12bn investment commitment from Qatar-based Al Mansour Holdings to help stabilize its faltering economy.
Botswana's diamond revenues, which account for 30 per cent of foreign earnings, halved last year and diamond production is expected to drop by 40 per cent in 2025.
In July, Botswana's mining minister Bogolo Kenewendo said: "President Duma Boko remains resolute in his quest to increase Botswana's stake in De Beers to ensure Botswana's full control over this strategic national asset and the entire value chain including marketing".
Boko sees De Beers as a "national strategic asset". Controlling it would give Botswana direct access to global diamond markets without intermediaries, improving its position in marketing and distribution of diamonds worldwide.
De Beers suffered a $288m net loss in 2024, primarily the result of a 44 per cent plunge in diamond sales.