SA billionaire Johann Rupert’s luxury giant eyes role in $1bn De Beers takeover bid

South Africa – Swiss luxury goods group Richemont, chaired by South African billionaire Johann Rupert, is in talks to join a consortium seeking to acquire diamond miner De Beers from Anglo American in a deal valued at about $1 billion.

According to Billionaires.Africa, Richemont and US jewellery retailer Signet Jewelers are discussing joining the Global Diamond Consortium, led by former De Beers chief executive Gareth Penny.

The discussions are advanced, but there is no guarantee that either company will join the consortium, the report said.

Reuters reported that the potential deal could give Richemont greater influence over its diamond supply chain as the industry faces weaker demand for natural diamonds and growing competition from cheaper laboratory-grown alternatives.

The luxury group owns high-end jewellery brands Cartier and Van Cleef & Arpels. Reuters quoted RBC analysts as saying Richemont’s potential participation was “strategically meaningful”, particularly for its long-term positioning in the natural diamond market.

Final ownership arrangements 

Anglo American, which owns an 85% stake in De Beers, put the diamond producer up for sale in 2024 as part of a broader restructuring. The company has faced falling diamond prices and weaker demand, particularly in China.

According to EWN, the Global Diamond Consortium was selected as Anglo American’s preferred bidder in July.

Botswana, which owns the remaining 15% of De Beers, is also central to the proposed transaction. Moneyweb reported that the government was nearing an agreement that could increase its stake to about 25%.

Any acquisition will depend on the final ownership arrangements and Botswana’s position in the transaction.

Richemont’s potential involvement would bring a major luxury jewellery group closer to the source of its raw materials, while the sale marks a significant step in Anglo American’s efforts to exit the diamond business.