Botswana and a consortium seeking to acquire De Beers are close to agreeing on an ownership structure that could increase the government’s stake in the diamond producer from 15% to approximately 25%, potentially clearing a major obstacle to its sale by Anglo American (LSE: AAL; JSE: AGL).
Global Diamond Consortium (GDC), led by former De Beers chief executive Gareth Penny, is negotiating the ownership structure with Botswana, Bloomberg reported on October 13, citing people familiar with the talks.
Anglo currently owns 85% of De Beers and Botswana the remaining 15%. Under the proposed sale, part of Anglo’s holding would pass to Botswana, raising its stake to approximately 25%, with Angola, Namibia and private consortium investors acquiring other interests. Angola and Namibia are both participants in GDC.
Under the structure being discussed, the three governments would collectively hold less than 50%, leaving majority ownership with private investors. The proposed stakes for Angola and Namibia, and the precise distribution of the remaining shares among consortium investors, have not been disclosed.
Anglo selected GDC as its preferred bidder from three shortlisted groups in July, Botswana’s Minister for State President Moeti Mohwasa told lawmakers at the time. Botswana, which holds a right of first refusal on the stake, said it could proceed with GDC, buy in on its own or partner with another group.
See IntelliNews: Botswana nears key decision point on Anglo’s proposed $1bn sale of its 85% De Beers stake. Is Gareth Penny’s consortium still the preferred bidder?
The proposed structure would represent a compromise for Botswana, whose President Duma Boko previously sought majority ownership. Vice President and Finance Minister Ndaba Gaolathe indicated in September that the government remained determined to increase its holding.
“Whatever the number is, it is more than 15%,” Gaolathe told Bloomberg TV.
The potential compromise comes amid growing fiscal constraints. Moody’s Ratings downgraded Botswana to Baa2 from Baa1 on September 25, its second cut in less than a year, and said it could lower the rating again if the government materially increased its investment in De Beers through debt-financed transactions.
See IntelliNews: Botswana weighs bigger De Beers stake as due diligence on Anglo diamond sale winds up
Anglo American has sought to sell De Beers since 2024 as part of a broader restructuring. The process has been complicated by falling diamond prices, weaker Chinese luxury demand and growing competition from laboratory-grown stones.
Anglo has discussed selling its 85% holding for approximately $1bn, comprising about $750mn upfront and $250mn later, plus performance-linked payments, with GDC also expected to inject about $500mn into De Beers, Bloomberg previously reported. No final valuation has been agreed. Three impairments in three years reduced De Beers’ carrying value to $2.3bn in February 2026.
Botswana’s involvement is crucial because it hosts De Beers’ most important mining operations, accounting for about 69% of the company’s rough-diamond production in the first half of 2026. The government also owns 50% of Debswana, its joint venture with De Beers, which produces most of the country’s diamonds.
Anglo and Botswana have targeted completion of the sale in the fourth quarter of 2026. Anglo American, GDC and Botswana’s presidential office declined to comment, according to Bloomberg.
An agreement on government ownership could remove a significant obstacle to GDC’s bid, although no binding sale agreement has been announced.