Johannesburg – South African billionaire Johann Rupert’s luxury goods group, Richemont, is among the potential investors looking to acquire a stake in diamond giant De Beers as Botswana moves to double its shareholding in the company to 30%.
The development follows an announcement by Botswana President Duma Boko on Monday, November 9, that the country would increase its existing 15% stake in De Beers, making it the company’s largest single shareholder under a proposed acquisition deal.
According to Billionaires.Africa, Richemont, which owns luxury jewellery brands including Cartier, Van Cleef & Arpels and Buccellati, has been in discussions to join the Global Diamond Consortium (GDC), the group seeking to acquire Anglo American’s 85% controlling stake in De Beers.
The consortium is led by former De Beers chief executive Gareth Penny and includes diamond industry players such as Diarough, Grandview Klein Diamonds and Belgian diamond buyer Pluczenik. US jewellery retailer Signet Jewelers is also reportedly considering joining the group.
Single largest shareholder
Reuters, in a report published by Business Day, reported that Botswana’s support was crucial to advancing the transaction because the country holds the right of first refusal over Anglo American’s stake.
“This means that, when this transaction is complete, Botswana’s shareholding in De Beers will double from the current 15% to 30%,” Boko told parliament.
” Botswana will become the single largest shareholder in De Beers, and with that comes greater influence in the strategic decisions for decades to come,” he added.
The proposed acquisition would give Richemont, which is controlled by Rupert, a potential foothold in the diamond supply chain supporting its luxury jewellery brands.
According to Moneyweb, Richemont and Signet were already in discussions with the consortium in October about taking minority stakes. However, the size of their potential investments has not been disclosed, and neither company’s participation has been finalised.
Mounting pressure
The transaction comes as De Beers faces mounting pressure from falling natural diamond prices, weaker luxury spending in China and growing competition from laboratory-grown diamonds.
Anglo American put its 85% holding in De Beers up for sale in 2024 as part of a wider restructuring strategy. The mining group has since reduced the carrying value of the diamond business to $2.3 billion following repeated impairments.
Boko said Botswana’s increased investment would also provide access to opportunities in advanced technology through Element Six, De Beers’ synthetic diamond and industrial materials business.
“Our investment in De Beers is not just an investment in natural diamonds. It is an investment in technology,” he said.
The proposed ownership structure is expected to include other African diamond-producing countries, with Namibia and Angola also set to participate.
Strategic clarity
Penny said the consortium was working with the governments involved and Anglo American to finalise the transaction.
“Together, we believe we can create a new chapter for this iconic business, one defined by strategic clarity between producing countries and the wider value chain, stronger consumer connection, and sustained growth in demand for natural diamonds,” he said.
Anglo American has confirmed that it will continue working with Botswana, other governments and the consortium towards finalising binding transaction documents.
The deal, however, has not yet been concluded, and the final ownership structure and investment commitments remain subject to negotiations.
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Compiled by Betha Madhomu
