Former De Beers CEO Gareth Penny has emerged as the frontrunner to acquire De Beers, the world’s largest diamond mining company.
The development comes as Anglo-American Plc moves ahead with plans to divest De Beers as part of a sweeping restructuring programme launched after fending off a takeover approach from mining giant BHP in 2024, according to Bloomberg.
While Anglo has already exited its platinum business and agreed to sell its coal assets, the sale of De Beers has proven more challenging amid a prolonged downturn in the global diamond market and competing interests from Botswana, one of the miner’s key stakeholders.
What they are saying
According to people familiar with the matter who spoke with Bloomberg, a consortium led by Penny currently holds a leading position in the bidding process.
- The group is reportedly backed by some of the world’s largest diamond trading companies and aims to refocus De Beers on its core business of mining and marketing natural diamonds.
- The sales process has faced repeated delays. Potential buyers were initially expected to submit binding offers by mid-April, but Anglo extended the timeline to allow bidders more time to secure financing.
However, ongoing instability linked to the Iran conflict has continued to affect funding arrangements, particularly for bidders seeking support from Middle Eastern investors.
Among the remaining contenders is a consortium led by Israeli diamond trader Nir Livnat, head of Diacore. Sources indicate that Livnat has encountered difficulties finalising financing from Middle Eastern backers, including investors from Qatar, as regional uncertainty weighs on investment decisions.
Get up to speed
Penny previously served as Chief Executive Officer of De Beers for five years before leaving the company in 2010, when it was still controlled by the Oppenheimer family.
- During his tenure, he steered the company through the global financial crisis, overseeing mine closures, production cuts and a $1 billion rights issue to stabilise the business amid collapsing diamond prices.
His experience managing the company during one of the industry’s most challenging periods is seen as a key advantage as De Beers grapples with another severe downturn.
What you should know
Despite Penny’s apparent lead, significant hurdles remain before any deal can be completed. Chief among them is Botswana, which owns a 15% stake in De Beers and hosts the company’s most productive diamond mines.
Botswana President Duma Boko has repeatedly expressed interest in increasing the country’s control over De Beers, at one point indicating a desire for majority ownership. Such a move could deter some private investors concerned about governance and future strategic direction.
