Anglo American may receive only $750 million in immediate cash to surrender control of De Beers, while the prospective buyer would inject another $500 million directly into the struggling diamond producer.
The transfer of a costly turnaround would have Anglo accept a fraction of De Beers’ former valuation while removing a business that lost more than $500 million last year and remains exposed to weakening natural diamond prices.
Bloomberg reported that the Global Diamond Consortium would pay roughly $750 million upfront and another $250 million later for Anglo’s 85% interest. Additional payments would depend on De Beers’ future performance.
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The consortium, led by former De Beers CEO Gareth Penny, would also put approximately $500 million into the business. Negotiations remain incomplete, and neither Anglo nor the consortium has confirmed the proposed financial terms.
The fixed $1 billion consideration would imply an equity value of approximately $1.18 billion for all of De Beers before any performance-linked payments, about 91% below the $12.75 billion valuation implied when Anglo agreed to acquire the Oppenheimer family’s 40% interest for $5.1 billion in November 2011.
Anglo’s 2011 announcement described De Beers as a collection of large, low-cost mining assets supported by established distribution and marketing operations. At the time, De Beers had reported $1.2 billion in EBITDA for the first six months of that year.
Fifteen years later, the reported upfront payment for more than twice that ownership interest would be less than one-sixth of Anglo’s original $5.1 billion expenditure.
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De Beers reported an underlying EBITDA loss of $511 million in 2025, widening from a $25 million loss in 2024. Revenue rose to $3.5 billion from $3.3 billion, but the company absorbed $424 million in trading losses after selling inventory previously acquired at higher prices.
Its consolidated average realized rough diamond price fell 7% to $142 per carat. Including inventory rebalancing measures, De Beers estimated that effective pricing declined by approximately 25%. Anglo subsequently recorded another $2.3 billion impairment against the business.
Conditions remained weak during the first half of 2026 despite a production recovery. Q2 output increased 88% to 7.8 million carats, partly because the comparison period included an extended maintenance shutdown in Botswana. Consolidated rough diamond sales revenue nevertheless fell 44% to $665 million from $1.19 billion.
The average realized price for the first half dropped 32% to $105 per carat. De Beers attributed the decline to weaker rough prices and a sales mix containing more lower-value stones.
Meanwhile, Botswana’s government owns 15% of De Beers and holds pre-emption rights over Anglo’s stake. A Botswana minister told lawmakers on July 17 that Anglo had selected the Global Diamond Consortium following a competitive process involving three shortlisted bidders.
Botswana is considering whether to participate alongside the consortium, acquire the stake independently, or partner with another party. The government expects the transaction to conclude during the Q4 2026, subject to its approval and other conditions.
Those rights mean the reported negotiations do not guarantee that the consortium will acquire Anglo’s full interest under the current structure.
Botswana also supplies most of De Beers’ rough diamond production through operations including the Debswana joint venture. Any buyer would therefore need more than financing. It would need a workable long-term relationship with the government that owns the remaining stake and controls the company’s most important production base.
Anglo began preparing to separate De Beers in May 2024 as part of a wider restructuring intended to concentrate its portfolio around copper, iron ore, and crop nutrients. It is also working to complete its merger with Teck Resources, which would create a combined company with more than 70% exposure to copper.
A $750 million upfront payment would make De Beers a relatively small source of disposal proceeds. Anglo separately agreed in May to sell its Australian steelmaking coal portfolio for as much as $3.88 billion.
Earlier in February, Anglo said it may write down the value of its De Beers diamond unit for the third consecutive year as the diamond industry faces sustained market weakness. The company already took a $2.9 billion writedown in February 2025 and a $1.6 billion charge in early 2024.
The strategic value of the De Beers transaction would instead come from removing a loss-making operation, transferring future capital requirements, and completing another major step in Anglo’s portfolio overhaul.
The reported price would not recover the valuation lost since 2011. It could, however, end Anglo’s direct exposure to a diamond downturn that has already produced three consecutive years of major impairments.
