Anglo American is moving to sell its 85% stake in De Beers for about $1 billion, a startling drop from the $50 billion valuation just two years ago. This price reflects a severe decline in rough diamond markets and signals a major shift in the company’s strategy.
Back in 2024, Anglo American turned down a $50 billion takeover offer from BHP. Now, the potential sale would fetch only around 2% of that amount. The diamond giant’s book value had already shrunk to $2.3 billion by early 2026 after consecutive write-downs. A $1 billion price tag means selling at roughly 43 cents on the dollar compared to that reduced valuation.
The diamond market’s troubles are well known. Oversupply and falling demand have battered prices. Lab-grown diamonds, cheaper and chemically identical, have eroded the natural diamond business. Younger consumers increasingly prefer these alternatives, while De Beers tried to compete with its Lightbox line positioned more as fashion jewelry than a rival to its traditional gems. Meanwhile, slowing demand from China, once a strong force in luxury goods, has further chilled the market.
Among likely buyers is a group linked to former De Beers CEO Gareth Penny, reportedly collaborating with the Botswana government, which holds the remaining 15% stake. The sale could mark the end of Anglo American’s decades-long dominance in the diamond sector, capping a prolonged period of strategic shifts under CEO Duncan Wanblad.
This content is for informational purposes only and should not be considered financial advice.
