Two Ex-De Beers CEOs in Possible Buyout Bids
June 08, 25
(IDEX Online) - Two former CEOs at De Beers are rumored to be involved in separate consortia that are interested in buying the troubled diamond miner.
Bruce Cleaver, who ran the company from 2016 to 2023, and Gareth Penny (2006 to 2010) are leading potential buyout groups, according to Reuters and Bloomberg news reports.
Indian manufacturers KGK Group and Kapu Gems are also reported to be considering bids, as is Indian commodities billionaire Anil Agarwal and Australian mining veteran Michael O'Keeffe (also non-executive chair of Burgundy Diamond Mines).
Penny, now chair of the Anglo-South African asset manager Ninety One, is said to be putting together a consortium backed by a Qatari investment fund.
Anglo American, parent company of De Beers, fought off a hostile takeover bid by rival BHP last year, and is seeking to divest De Beers, among other assets, to focus on copper and other more profitable operations.
Its 85 per cent stake (the Botswana government owns the remainder) is now valued at just $4.1bn after a number of write-downs as demand for natural diamonds remains weak.
Anglo is considering a direct sale, a demerger, or an initial public offering (IPO) to divest De Beers.
De Beers made a net loss of $314m in 2023 and $288m in 2024. It has been forced to cut diamond prices, including secret deals and discounts to select buyers, in an effort to move inventory and stabilize its finances.
Pic shows Bruce Cleaver (left) and Gareth Penny (right).