Botswana’s proposed 25 percent De Beers stake is taking shape as luxury investors pursue majority control of the struggling miner
BONGANI MALUNGA
A new ownership structure is taking shape for De Beers, with Botswana positioning itself for a 25 percent stake while an influx of global luxury giants and diamond industry players prepares to take control of the remaining shares in the struggling diamond producer.
The emerging arrangement could see private investors collectively controlling 51 percent of De Beers, while Botswana, Namibia and Angola share the remaining 49 percent, effectively replacing Anglo American’s longstanding majority ownership with a multi-party consortium.
According to The Times, the proposed structure is being assembled around the Global Diamond Consortium (GDC), led by former De Beers Chief Executive Officer Gareth Penny, which has emerged as the preferred bidder for Anglo American’s 85 percent shareholding.
NEARING AN AGREEMENT
Bloomberg recently reported that Botswana and GDC were nearing an agreement that could increase government’s existing 15 percent stake to approximately 25 percent.
Under the proposed arrangement, Botswana would become the largest individual government shareholder, with Namibia and Angola potentially sharing the remaining 24 percent allocated to the three diamond-producing nations.
However, the individual stakes for Namibia and Angola remain undisclosed, while the allocation of shares among private investors has yet to be finalised. The arrangement would also mark a departure from President Duma Boko’s earlier ambition to secure majority control of De Beers, leaving Botswana with an enlarged but still minority stake.
LUXURY GIANTS ENTER THE PICTURE
The proposed ownership structure is attracting considerable international interest, with some of the world’s biggest jewellery retailers seeking a foothold in the diamond giant. According to Reuters and Bloomberg, Swiss luxury conglomerate Richemont, owner of Cartier and Van Cleef & Arpels, is in advanced discussions to join the Penny-led consortium.
American jewellery giant Signet, which owns Kay Jewelers, Zales and Jared, is also reportedly considering participation. Meanwhile, Antwerp-based diamond manufacturer Pluczenik has confirmed its interest in acquiring a stake, although its participation in GDC has not been established.
The involvement of these industry players could create an ownership model linking African diamond-producing governments directly with international luxury brands, manufacturers and retailers.
The significance extends beyond increasing its shareholding for Botswana, such an arrangement could provide access to influential jewellery markets at a time when declining natural diamond demand continues to weigh heavily on the country’s diamond industry.
Botswana also retains a right of first refusal over Anglo American’s holding, making its position crucial to concluding the transaction.
RISKS BEHIND THE OWNERSHIP RUSH
However, industry analysts have cautioned that the growing number of interested parties also reflects the substantial financial risks associated with taking over De Beers.
Dan Mano, Chief Executive Officer of diamond market advisory firm Rapaport, told Reuters that the involvement of numerous investors suggested individual groups were reluctant to shoulder the financial burden alone.
Analysts at RBC Capital Markets similarly warned that an investment in the struggling producer could become “a money pit,” despite Richemont’s commercial relationship with De Beers. The company recorded an underlying operating loss of US$787 million in 2025 against revenue of approximately US$3.5 billion.
However, Tobias Kormind, Managing Director and Co-founder of jewellery brand 77 Diamonds, told Reuters that acquiring De Beers at the bottom of the market could present a “completely historic” opportunity.
Post Views: 97