Botswana is seeking to close a deal to acquire a majority stake in De Beers by the end of October as negotiations continue with Anglo American, the diamond miner’s controlling shareholder, and other interested buyers, reported Bloomberg.
Anglo American, which owns 85% of De Beers, has been working through a restructuring process for the past 16 months and is planning to divest its stake.
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The Government of Botswana, which already holds a 15% stake in the diamond company, aims to increase that to more than 50%.
Botswana President Duma Boko confirmed that talks are under way with partners, including discussions with Oman’s sovereign wealth fund, to finance the acquisition.
The Oman Investment Authority declined to respond to inquiries on the matter, reported the media outlet.
The sale of De Beers comes amid a challenging period for the diamond market, with natural stones facing competition from lab-grown alternatives.
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By GlobalDataDespite this, Anglo American has received interest from other buyers and a deal with Botswana has not been finalised yet.
Diamonds remain crucial to Botswana’s economy, accounting for 80% of its export earnings and around a third of government revenue.
However, the decline in gem prices has weighed heavily on the country.
De Beers, one of the world’s largest producers of diamonds alongside Russia’s Alrosa, mines most of its stones in Botswana.
The mining company is considering options for an initial public offering or demerger of the unit but would prefer a sale.
President Boko emphasised the importance of natural diamonds and urged consumers to choose them over synthetic stones.
The Botswana Government also noted discussions with the US, the largest market for natural gems, to push for tariff reductions on diamonds.
President Boko expects to meet with US Commerce Secretary Howard Lutnick to discuss the matter further.
In August, De Beers, in partnership with Endiama, announced the discovery of a new kimberlite field in Angola.
