A number of sources have expressed interest in snapping up De Beers from parent company Anglo American, including ex-chiefs Gareth Penny and Bruce Cleaver, who have each put in separate bids.
Penny, who was with Anglo American for 22 years and headed De Beers for the last five of those until his departure in 2010, is leading one group of buyers, backed by a Qatari investment fund, sources told Reuters. Currently the chair of investment firm Ninety One, Penny would become chairman of the potential new company. Meanwhile, Bruce Cleaver, board director at ruby and emerald miner Gemfields and CEO of De Beers from 2016 to early 2023, is also heading a group of interested buyers, Bloomberg noted.
Australian mining veteran Michael O’Keeffe, who sits on the board of Burgundy Diamonds, which owns the Ekati mine in Canada, is in the running as well, according to Bloomberg.
Another reported contender is Indian billionaire Anil Agarwal, chairman of Vedanta Resources, which has mines in Zambia and South Africa. He is part of a larger group ready to bid for De Beers, Reuters said. Agarwal was the largest shareholder in Anglo American, holding a nearly 20% stake, before offloading it in 2019. Rumors are swirling that Indian diamond companies KGK Group and Kapu Gems, two of De Beers’ biggest customers, have separately expressed interest as part of larger groups.
Interest in the mining giant has also come from the government of Botswana, which currently owns 15% of De Beers and holds half of the Debswana joint venture. However, the government is looking to up its stake, rather than make an outright purchase, the Reuters report noted.
Anglo American has been trying to offload De Beers for over a year, as it works to focus on its core businesses. At the same time, it is also pursuing an initial public offering (IPO) for the company as a backup plan. Anglo has already sold nickel, coal and platinum assets. In February, Anglo CEO Duncan Wanblad speculated that De Beers would exit the firm by the end of 2025. The company currently has an estimated worth of $4.1 million after Anglo wrote down its value by $2.88 billion a few months ago.
Images: Gareth Penny (l) and Bruce Cleaver (r). (Ben Perry/Armoury Films/De Beers)
