The Richemont group is interested in joining the race to acquire the brand synonymous with diamonds.
Should it go through, this would be one of the most significant deals in the jewelry world since LVMH’s acquisition of Tiffany. According to Bloomberg, the Richemont group is exploring an offer to participate in the acquisition of De Beers. Last February, the leadership of Anglo American—which controls the brand synonymous with diamonds—announced its intention to sell De Beers by the end of the year.
The brand, famous for coining the slogan “A diamond is forever,” has become a burden for the mining group, partly due to a decline in gem prices—a trend driven by the rise of lab-grown diamonds, which are sold at lower price points. Ironically, De Beers itself played a role in the proliferation of synthetic diamonds, having launched “Lightbox”—a line of lab-grown stones—years ago. De Beers shuttered its lab-grown diamond business only last year, returning its focus exclusively to natural gems; by then, however, the damage was done.
Consequently, earlier this year, Anglo American halved the book value of De Beers, implementing a massive $2.3 billion write-down—the third such adjustment in just over two years. The mining group’s financial statements show a net loss of $3.7 billion in 2023, following a $3 billion loss the previous year.
According to Bloomberg, the Geneva-based Richemont group—which owns brands such as Van Cleef & Arpels, Cartier, Piaget, Buccellati, and Vhernier—would join other potential bidders, including the U.S.-based diamond retailer Signet Jewelers and the Global Diamond Consortium, a group led by former De Beers CEO Gareth Penny. The latter is reportedly in pole position to acquire De Beers from Anglo American. The Global Diamond Consortium also includes the states of Namibia and Angola—both major diamond producers—and has allegedly initiated negotiations with Botswana to increase its stake in De Beers to approximately 25%.
