De Beers invented, half a century ago, the slogan “a diamond is forever”. But the principle does not apply to itself: the company synonymous with diamonds is for sale. The one who wants to get rid of the company is the mining group Anglo American, the largest shareholder with 85%, while the remaining 15% is held by the Government of the Republic of Botswana, even if the news is not yet official. However, the mining group is close to opening a formal process for the sale of De Beers, with advisors Morgan Stanley, Goldman Sachs and Centerview. According to the Reuters news agency, there are at least six consortia ready to negotiate, which include, among others, Qatari investment funds, the Indian magnate Anil Agarwal, president of Vedanta Resources, and other Indian companies specialized in gem cutting and customers of De Beers, including KGK Group and Kapu Gems.
According to Bloomberg, among the candidates for the purchase there are also two former CEOs of De Beers along with as many groups Bruce Cleaver and Gareth Penny. Finally, among the suitors there is also another veteran of the mining sector, the Australian Michael O’Keeffe. The book value of De Beers is 4.9 billion dollars, after write-downs of 3.5 billion in the last two years. The company specialized in diamonds from its foundation in 1888 until the beginning of the 21st century controlled 80-85% of the distribution of rough diamonds and was considered a monopoly.
