Complex De Beers Sale

Happy Lunar Festival as we usher in the Year of the Horse.

While we have one eye on China’s Golden Week in the coming days, our attention last week was drawn to the annual Investing in African Mining Indaba in Cape Town. The conference doesn’t usually place much emphasis on diamonds, but this year was a little different amid heightened interest in Anglo American’s sale of De Beers.

Most significant were comments by Anglo CEO Duncan Wanblad that the decline in diamond prices has made the sale more “complex” (read the interview here).  That came shortly after Anglo indicated it will likely reduce the book value of De Beers in its full-year earnings results to be published on Friday, February 20.

Wanblad also addressed the potential buyer pool, stressing that no single entity is large enough to acquire the company outright and that Botswana will remain a key player in De Beers’ future.

This blog first appeared in the February 16 Pressing Matters Executive Memo. Read the full memo here, Pressing Matters, featuring the following sections:

• What I'm Watching

• Trade Takeaways

• Chart Check

• Retail Focus

• What I'm Reading

• Coming Up

• Pic of the Week: Honey Bunny

Whatever you thought of the much talked-about Super Bowl Halftime Show, there was no missing the diamond moment. Bad Bunny took the stage wearing a custom marquise natural diamond stud in a yellow “honey” hue by designer Marvin Douglas. De Beers has been promoting similar tones through its Desert Diamonds campaign, pointing to the piece as further evidence that warmer shades are gaining traction. (Image credit: De Beers / adiamondisforver).