Botswana Seeks Controlling Stake in De Beers Amid Sale Talks

Botswana is seeking a controlling stake in De Beers, the leading diamond producer, as Anglo American prepares to divest from the company amid a challenging market environment. The southern African nation, which currently owns 15% of De Beers and co-owns the Debswana joint venture, aims for full control over the strategic asset and its entire value chain, including marketing. Botswana’s Mining Minister, Bogolo Kenewendo, affirmed President Duma Boko's commitment to increasing the country’s stake and expressed frustration with Anglo American's handling of the sale process, emphasizing that any sale without Botswana's support would be difficult. Anglo American is pursuing a dual-track strategy to either sell De Beers by early August or pursue a public listing if no acceptable buyer emerges, under pressure to complete the divestment by year-end following a failed takeover attempt by BHP. The diamond industry is currently facing a prolonged slump, partly due to the rise of lab-grown diamonds capturing over half of the U.S. engagement ring market, which has led to a significant decline in natural diamond demand and production. Despite ongoing negotiations, Botswana’s firm stance and the industry downturn complicate Anglo American’s plans, with the government calling for transparent coordination in the sale process.