Botswana to Double De Beers Stake and Back Penny-Led Consortium

Overview

• Botswana announced on Monday that it will raise its shareholding in De Beers from 15% to 30%, making the country the single largest shareholder in the company.
• President Duma Boko said Botswana endorses the bid led by former De Beers CEO Gareth Penny and that the governments of Namibia and Angola will take part in the proposed transaction.
• Anglo American, which put its 85% stake in De Beers up for sale as part of a long-running portfolio simplification, said it will continue working with governments and the Global Diamond Consortium to agree binding transaction documents.
• Boko confirmed Element Six, De Beers’ synthetic-diamond unit, will join plans for a reported $600 million U.S. synthetic-diamond plant after a request from U.S. officials, linking the deal to technology and industrial markets beyond natural gems.
• The move would shift more revenue and control to diamond-producing governments and could affect jobs, state income and supply-chain oversight, but key details such as final ownership splits, private partners and a closing timetable remain unresolved.