ANGLO American’s planned sale of De Beers is drawing interest from former CEOs of the diamond mining giant, Bloomberg News reported on Thursday.
The disposal represents the final phase of a comprehensive restructuring programme outlined by Anglo CEO Duncan Wanblad last year as the company defended against a takeover bid from BHP. Anglo has already agreed to sell its coal and nickel operations and spun off its platinum business this week.
Former De Beers leaders Gareth Penny and Bruce Cleaver are both heading groups of potential purchasers, alongside Australian mining veteran Michael O’Keeffe, said Bloomberg News citing sources familiar with the matter. Anglo is working with advisers preparing to commence the process, said the newswire.
Anglo has delayed selling De Beers whilst the diamond industry confronted its most severe crisis in decades, following collapsed Chinese demand and intense competition from synthetic stones. Anglo wrote down the unit’s value for a second time in February to approximately £3.3bn.
Despite rough diamond prices slumping, Anglo executives still regard De Beers as a trophy asset, said Bloomberg. The company has stated it will be patient finding a buyer and avoid destroying value through hasty action.
The diamond market now shows stabilisation signs, although President Donald Trump’s trade policies have created fresh uncertainty.
Anglo is also examining options for an initial public offering or demerger of De Beers, though a sale remains the preferred option.
A successful disposal would mark significant progress in Wanblad’s efforts to streamline Anglo’s business after missteps left the century-old miner vulnerable to BHP’s takeover attempt.
