Botswana Eyes Control of De Beers in Major Diamond Deal
Botswana is accelerating efforts to secure control of De Beers, the world’s leading diamond producer by value, as parent company Anglo American prepares to divest its 85% stake in the diamond giant. President Duma Boko said his government intends to finalize a deal by the end of October, despite ongoing negotiations between Anglo and other potential buyers.
“We are more than ready for the transaction and we’ve said the transaction must be concluded by the end of October,” Boko told Bloomberg News. “It’s a matter of economic sovereignty for Botswana.” Securing a controlling stake would raise Botswana’s interest in De Beers above 50%. The company sources about 70% of its rough diamonds from the country, making the deal a strategic priority for Gaborone.
Botswana’s Minister of Minerals and Energy, Bogolo Kenewendo, emphasized that the country would not stand by as decisions affecting its most valuable natural resource are made without its input. “Any sale of the company without our support will be difficult to achieve,” she warned, accusing Anglo of failing to involve the government in a transparent or coordinated manner.
The potential acquisition would grant Botswana greater control over the management of its mineral wealth and potentially transform the country’s economy. However, analysts remain cautious about Gaborone’s takeover ambitions, citing concerns about the government’s ability to manage an entity like De Beers and the potential financial risks involved.
De Beers has struggled amid falling demand from China and growing competition from lab-grown stones. Anglo American has twice cut De Beers’ valuation, most recently to $4.1 billion in February. The miner reported a 44% revenue drop in the first quarter and is holding $2 billion in unsold diamonds.
Botswana’s push for control of De Beers comes as the country faces mounting financial pressures from plummeting diamond revenues. Diamonds make up around 80% of Botswana’s exports and a third of government income, leaving the economy acutely exposed to market downturns.
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