De Beers Headed for Consortium Sale as Anglo Chief Confirms Exit Strategy

The world’s largest diamond company faces its third writedown in three years as CEO Duncan Wanblad accelerates divestment amid market turmoil and political complexities.

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What’s happening? Anglo American CEO Duncan Wanblad confirmed the sale of De Beers is “progressing” with multiple consortium bids, including one led by former De Beers CEO Gareth Penny backed by Qatari investment funds. The sale faces complex dynamics as Botswana, Angola, and Namibia governments compete alongside private bidders for control of the $3-5 billion diamond giant. Anglo expects completion within six months as the company refocuses on copper and iron ore while De Beers faces its third potential writedown since 2024.

A Century-Old Empire Seeking New Owners

Anglo American’s sale of De Beers represents one of the mining industry’s most significant divestitures, marking the end of an era that began when Sir Ernest Oppenheimer founded both companies over a century ago. CEO Duncan Wanblad confirmed on Thursday that the separation is “progressing”, though he kept specific details under wraps as negotiations intensify.

The timing reflects broader challenges facing the mining sector, as European mining companies navigate industry consolidation amid shifting commodity demands and geopolitical pressures. Anglo’s decision to exit diamonds comes after successfully defending against BHP Group’s £39 billion hostile takeover bid in 2024, prompting a radical restructuring focused on future-facing metals.

Former CEO Emerges as Frontrunner

The leading contender appears to be a consortium led by former De Beers managing director Gareth Penny, who helmed the company from 2005 to 2010 during its transition from Oppenheimer family control. Penny is assembling backing from Qatari investment funds, including Mayhoola For Investments and Al Mirqab Capital, after Qatar’s sovereign wealth fund QIA declined to participate.

This cross-border investment structure reflects the complex international capital flows reshaping major business transactions globally. Industry insiders view Penny as uniquely qualified for the challenge. “The consortium led by Gareth Penny is the only one of the known bidders that I believe meets all these requirements,” said Botswana Diamonds managing director James Campbell, citing Penny’s deep industry knowledge, marketing expertise, financial backing, and African relationships as critical success factors.

Penny’s consortium faces competition from another former De Beers CEO, Bruce Cleaver, who ran the company from 2016 to 2023 and now chairs gemstone miner Gemfields. The presence of two ex-leaders reflects the complexity of managing De Beers’ sprawling operations across mining, marketing, and retail divisions.

African Governments Stake Their Claims

The sale’s political dimensions add unprecedented complexity, as diamond-rich African nations assert sovereign interests over their primary economic asset. Botswana has been “the most ardent in its ambition to acquire a controlling stake,” leveraging its existing 15% ownership and its status as De Beers’ largest diamond supplier, contributing 70% of annual production.

Angola recently overtook Botswana as Africa’s top diamond producer by value for the first time in two decades, shifting the continent’s diamond hierarchy and strengthening Luanda’s negotiating position. Angola initially proposed a pan-African consortium before submitting a solo bid for majority control, setting up a potential bidding war between neighboring producers.

Namibia has also expressed interest, creating a three-way African competition that mirrors broader strategic resource control initiatives across emerging markets. Wanblad said Botswana’s government will join negotiations with shortlisted bidders, acknowledging the political sensitivity of any transaction.

Market Turmoil Drives Urgent Sale

De Beers’ financial deterioration has accelerated Anglo’s exit strategy, with the potential for a third writedown in as many years as diamond prices continue falling. De Beers’ average realized diamond price declined 7% to $142 per carat in 2025, while the company sold inventory below cost to clear lower-value goods.

The crisis stems from multiple factors: weakening Chinese demand, growing popularity of lab-grown diamonds, and shifting consumer preferences among younger buyers. Demand for natural diamonds has weakened as younger buyers spend less on traditional jewelry and are drawn to cheaper lab-grown gems.

This market disruption reflects broader trends affecting luxury consumer sectors, as traditional business models face technological and generational challenges. De Beers reported holding an inventory of unsold mined diamonds valued at approximately US$2 billion in 2025, highlighting the scale of the demand shortfall.

Strategic Refocus on Future Metals

Anglo’s divestment of De Beers forms part of a comprehensive portfolio transformation designed to capitalize on the energy transition. The company has already demerged its platinum unit, Amplats, and is selling metallurgical coal assets to focus on copper and iron ore—metals essential for renewable energy infrastructure and electric vehicles.

This strategic pivot aligns with European industrial transformation around critical mineral security and green technology supply chains. Anglo’s merger with Canadian copper miner Teck Resources, creating Anglo Teck with a combined market value over $50 billion, underscores this future-focused strategy.

Timing and Execution Challenges

Wanblad expects the sale process to conclude within six months, though complex stakeholder dynamics could extend negotiations. Anglo has also prepared an IPO backup plan, reflecting renewed confidence in European capital markets despite challenging conditions in the diamond sector. Anglo American values De Beers at about $5 billion, though UBS analysts estimate the final sale price could range from $3 billion to $4 billion given soft market conditions.

The eventual outcome will reshape the global diamond industry’s structure and determine whether De Beers can rebuild consumer demand through renewed marketing investment and operational improvements. For Anglo American, successful completion of the sale will mark the final step in its transformation from a diversified mining conglomerate to a focused metals producer positioned for the clean energy transition.

As negotiations intensify, the century-old diamond empire’s future hangs in the balance between financial pragmatism and political complexity, with implications extending far beyond Anglo American’s balance sheet to the economic destinies of diamond-dependent African nations. The outcome may signal broader trends in resource sovereignty and strategic autonomy across global commodity markets.

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