Anglo American picked a group led by one of its former executives as its preferred bidder for an 85% stake in De Beers. The Global Diamond Consortium, led by Gareth Penny, was selected from three shortlisted groups following a bidding process, according to Moeti Mohwasa, Botswana’s defense minister. Botswana holds the remaining 15% of the world’s largest diamond miner alongside pre-emptive rights, giving Gaborone the full power to match the offer, buy the stake independently, or join forces with a third party. The group’s proposal included potential equity participation by neighboring diamond-producing nations Angola and Namibia.
Diamonds generate roughly 80% of Botswana’s export revenue and the country is the world’s top producer of the precious gems by value. Gaborone is assessing its participation in the deal and turnaround viability amid a prolonged slump in rough diamond demand driven by lab-grown competition. Last week, De Beers — which is owned by Anglo American — announced a two-year production halt at its flagship Venetia mine in South Africa.