Botswana eyes 25% De Beers stake as luxury firms bid
Global luxury giants and diamond industry players are pursuing majority control of the struggling miner.
Botswana is positioning itself to acquire a 25 percent stake in De Beers as global luxury investors prepare to take control of the struggling diamond producer. The proposed ownership structure could see private investors collectively controlling 51 percent of De Beers, with Botswana, Namibia, and Angola sharing the remaining 49 percent.
The Global Diamond Consortium (GDC), led by former De Beers CEO Gareth Penny, is the preferred bidder for Anglo American’s 85 percent shareholding. Bloomberg reported that Botswana and GDC are nearing an agreement to increase the government's existing 15 percent stake to approximately 25 percent, making Botswana the largest individual government shareholder.
Swiss luxury conglomerate Richemont, owner of Cartier and Van Cleef & Arpels, is in advanced discussions to join the Penny-led consortium. Individual stakes for Namibia and Angola remain undisclosed, and the allocation of shares among private investors has yet to be finalized.
Why it mattersBotswana's government is set to increase its stake in the diamond producer De Beers.