Former De Beers CEOs circle diamond giant as sale nears

[Redator]

Anglo American (LON: AAL) is edging closer to launching a formal sale process for De Beers after reportedly receiving expressions of interest from several potential buyers, including two former chief executives of the diamond miner.

De Beers, the world’s leading diamond producer by value, has been on the chopping block since May 2024, when Anglo announced plans to either sell the unit or launch an initial public offering (IPO). This decision came as part of a corporate overhaul triggered by Anglo’s successful defence against a £39 billion ($49 billion) takeover bid by Australian rival BHP (ASX: BHP).

Former De Beers bosses Gareth Penny and Bruce Cleaver are both leading groups that are potential buyers, as is Australian mining veteran Michael O’Keeffe, according to anonymous sources quoted by Bloomberg.

Penny is chair of Ninety One, an investment firm with over $175 billion of assets under management. Cleaver has served for nearly a year as chair and independent non-executive director at Gemfields (LON: GEM) (JSE: GML), which mines emeralds and rubies. O’Keeffe, who orchestrated the $3.7-billion sale of Riversdale Mining to Rio Tinto in 2011, currently sits on several mining boards, including Burgundy Diamond Mines (ASX: BDM), which operates Canada’s Ekati mine.

Anglo American declined MINING.COM’s request for comments. Penny, Cleaver and O’Keeffe could not be reached. 

Cracking under pressure

The sale of De Beers comes amid unfavourable market conditions. Prices have fallen amid rising competition from lab-grown precious stones and weakening demand in China. In February, Anglo slashed the unit’s valuation for a second time, bringing it down to $4.1 billion. CEO Duncan Wanblad said at the time that De Beers might remain under Anglo’s ownership into 2026, depending on market conditions.

Diamond mining industry cracks under pressure

Recent figures highlight the severity of the crisis. De Beers reported a 44% revenue drop in the first quarter of the year and is sitting on $2 billion worth of unsold stock. The company also plans to cut more than 1,000 jobs at its Debswana joint venture, according to the mine workers union, even though the operation is the backbone of Botswana’s economy.