Anglo American sells De Beers for $1 billion, 90% below peak

The diamond giant once valued at more than $18 billion is being sold for roughly 5% of that peak price, marking the end of an era for the industry's most iconic name.

Anglo American agreed to sell its 85% De Beers stake for about $1 billion to a consortium led by former CEO Gareth Penny, people familiar with the matter said.

The Global Diamond Consortium, or GDC, will pay about $750 million at closing and $250 million on a deferred basis, with additional performance-based payments, the people said. The consortium also plans to inject about $500 million into De Beers to support operations.

The deal values the 85% stake at roughly one-tenth of the $13 billion Anglo American paid to acquire full control from the Oppenheimer family in 2011. De Beers was valued at more than $18 billion when Anglo American and the Oppenheimers took it private in 2001. Anglo American has written down De Beers three times in three years, cutting its carrying value to $2.3 billion in February.

The sale caps a dramatic decline for the world's most famous diamond company, which once controlled more than 80% of global rough diamond supply. Rough diamond prices have fallen 50% over the past two years as Chinese luxury demand collapsed and lab-grown diamonds captured a growing share of the market.

From $18 Billion to $1 Billion

The proposed price represents a more than 90% discount to De Beers' peak valuation and a roughly 80% discount to the 2011 acquisition price. Anglo American wrote down the business by $1.6 billion in 2024 alone. The company cut its 2025 diamond production forecast to 20 million carats from 33 million, a 39% reduction. Fourth-quarter output fell 26% to 5.8 million carats.

Botswana Negotiations Remain

The transaction does not include Botswana's 15% stake in De Beers. The southern African nation also owns 50% of Debswana, the joint venture that produces the majority of De Beers' diamonds. About 70% of De Beers' rough diamond output comes from Botswana. President Duma Boko has said the country wants majority control, though people familiar said Botswana may accept a larger minority stake instead.

Anglo American launched the divestiture after rejecting a roughly $50 billion takeover approach from BHP Group in 2024. The company is also selling its steelmaking coal mines to Peabody Energy Corp. for $3.77 billion and plans to exit platinum and nickel as part of a sweeping restructuring focused on copper, iron ore and agricultural fertilizers.

This article is for informational purposes only and does not constitute investment advice.