De Beers Set to Sell for US$1 Billion, a Tenth of 2011 Value
SOUTHERN AFRICA · MINING
Key Facts
—Price: Anglo American would take about US$750 million in cash up front and a further US$250 million later for its 85% stake in De Beers, Bloomberg reported on 29 July. Performance-linked payments could follow.
—Buyer: The Global Diamond Consortium, led by former De Beers chief executive Gareth Penny, would also inject roughly US$500 million into the company itself.
—The fall: A fixed US$1 billion implies about US$1.18 billion for all of De Beers, against the US$12.75 billion implied when Anglo bought out the Oppenheimer family in November 2011.
—The losses: De Beers reported an underlying EBITDA loss of US$511 million in 2025, and Anglo then wrote the business down by US$2.3 billion — its third consecutive writedown.
—Botswana’s veto: The government owns 15% of De Beers and holds pre-emption rights over Anglo’s stake. It expects the deal to close in the fourth quarter, subject to its approval.
—Prices, not volumes: Rough diamond sales revenue fell 44% to US$665 million in the first half of 2026 even as production rose 46%, with the average realised price down 32% to US$105 a carat.
The De Beers sale now on the table would pay Anglo American about US$1 billion for control of the world’s best-known diamond company, less than a tenth of what the business was worth to it in 2011. Botswana, which owns 15% and holds first refusal, can still redraw the deal.
What the De Beers sale would actually pay
Anglo American would receive roughly US$750 million in cash on completion and a further US$250 million later, Bloomberg reported on 29 July. Additional payments would depend on how De Beers performs after the handover.
The buyer, the Global Diamond Consortium, is led by Gareth Penny, who ran De Beers until 2010. It would also put about US$500 million of fresh money into the company.
Neither Anglo nor the consortium has confirmed the terms, and the negotiations are not finished. What is on the table is a shape rather than a signature.
A tenth of what Anglo paid to take control
The fixed consideration implies an equity value of roughly US$1.18 billion for the whole of De Beers before any earn-out. In November 2011, Anglo bought the Oppenheimer family’s 40% holding for US$5.1 billion, implying about US$12.75 billion for the company.
Fifteen years later, the upfront payment for more than twice that stake would be under one-sixth of what Anglo spent on the Oppenheimer share alone.
The gap is less a bargain than a transfer of liabilities. Anglo would be handing over a loss-making business and, with it, the obligation to fund its recovery.
Three years of writedowns behind the price
De Beers reported an underlying EBITDA loss of US$511 million in 2025, widening from a US$25 million loss the year before. Revenue edged up to US$3.5 billion from US$3.3 billion, but the company absorbed US$424 million of trading losses on stock bought when prices were higher.
Its consolidated average realised rough price fell 7% to US$142 a carat, and De Beers estimated that effective pricing dropped about 25% once inventory rebalancing was counted.
Anglo then took a US$2.3 billion impairment, after US$2.9 billion in February 2025 and US$1.6 billion in early 2024. That is three consecutive years of writing down the same asset.
More carats, less money
The first half of 2026 made the problem plain. Production rose 46% to 14.9 million carats, with Botswana up 93% to 5.5 million against a year-earlier period disrupted by an extended maintenance shutdown.
Namibia went the other way, down 5% to 600,000 carats on lower grades and volumes. Second-quarter output alone jumped 88% to 7.8 million carats.
Yet consolidated rough diamond sales revenue fell 44% to US$665 million from US$1.19 billion, and the average realised price for the half dropped 32% to US$105 a carat. De Beers attributed that to weaker rough prices and a sales mix weighted towards lower-value stones.
The company is now proposing to pause production at Venetia in South Africa for two years from the second half of 2026. Debswana, by contrast, had planned to lift output to 18 million carats this year from 15 million, Botswana’s central bank said in June.
Why Botswana decides this
Botswana’s government owns 15% of De Beers and holds pre-emption rights over Anglo’s stake, which means it can match any offer. A minister told lawmakers on 17 July that Anglo had chosen the Global Diamond Consortium after a competitive process with three shortlisted bidders.
The government is weighing three options: join the consortium, buy the stake alone, or bring in a different partner. It expects the transaction to conclude in the fourth quarter of 2026, subject to its approval.
Botswana also supplies most of De Beers’ rough production through the Debswana joint venture. Any buyer therefore needs a working relationship with the state that owns the rest of the company and controls its most important mines.
What it means for Anglo, and for the wider retreat
Anglo began preparing to separate De Beers in May 2024, as part of a restructuring around copper, iron ore and crop nutrients. It agreed in May to sell its Australian steelmaking coal portfolio for as much as US$3.88 billion, and is working to complete a merger with Teck Resources that would leave the combined group more than 70% exposed to copper.
Against those numbers, US$750 million up front is small. The strategic value lies in removing a loss-maker and passing on its future capital needs.
The pattern is familiar across the continent. Western majors are stepping back from African assets that no longer fit portfolios rebuilt around energy-transition metals, and state or regional buyers are stepping forward.
For Botswana the calculation is not primarily financial. Diamonds are the state’s revenue base, and whoever owns the marketing channel influences how much of each stone’s value stays in the country.
Frequently Asked Questions
How much is Anglo American getting for De Beers?
Bloomberg reported on 29 July that the fixed consideration is about US$1 billion, roughly US$750 million up front and US$250 million later. Further payments would depend on how De Beers performs.
Why is De Beers worth so much less than in 2011?
Rough diamond prices have fallen sharply, leaving De Beers with an underlying EBITDA loss of US$511 million in 2025. Anglo American has written the business down in three consecutive years.
Can Botswana block the De Beers sale?
Botswana owns 15% of De Beers and holds pre-emption rights over Anglo’s 85% stake, so it can match any offer. It expects to decide before the transaction closes in the fourth quarter of 2026.
Is De Beers producing fewer diamonds?
No. First-half 2026 production rose 46% to 14.9 million carats, but sales revenue fell 44% to US$665 million and the average realised price dropped 32% to US$105 a carat.
What happens to the Venetia mine?
De Beers has proposed pausing production at Venetia in South Africa for two years, starting in the second half of 2026. The pause is a cost measure while the rough market stays weak.
Connected Coverage
The downturn has been reshaping the region’s biggest producer for two years, from the record stone recovered in Botswana’s 2,492-carat find to the government’s deliberate move into other resources in Botswana’s pivot to critical minerals. Both sit inside the wider contest for African resources we track in Africa: The New Scramble.
Sources: Bloomberg.
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