De Beers Deal Imminent
Talk around town is that Anglo American will announce the preferred bidder for its 85% stake in De Beers in the coming week, then sign a deal shortly thereafter. At this stage, we understand that two groups remain in the running: one headed by Israeli businessman Nir Livnat, chairman of manufacturer Diacore, and the other led by former De Beers CEO Gareth Penny.
The sale has been the subject of much speculation since Anglo first announced its intention to sell in May 2024. While Penny is widely seen as the frontrunner, the makeup of his consortium and the stakes taken by the governments of Botswana, Namibia and Angola are the more interesting moving parts.
The deal has particular significance for Botswana, which accounts for about 70% of De Beers’ production and relies heavily on diamond revenues to fund public spending. President Duma Boko will deliver his State of the Nation address today, Monday, although he is unlikely to focus on the De Beers deal. However, while his real priorities include health care, public services, job creation and infrastructure development, they all fall under the shadow of the diamond industry which continues to weigh on the country’s economy and social fabric.
Let's see if these rumors finally translate to a deal.
Read the full November 9 edition of the Pressing Matters Executive Memo here.
Comments