Anglo American (LON: AAL) is moving closer to spinning off its diamond unit, De Beers, after the government of Botswana confirmed interest in increasing its stake in the world’s leading diamond producer by value.
De Beers has been on the chopping block since May 2024, when Anglo announced plans to either sell the unit or launch an initial public offering (IPO). This decision came as part of a reorganization initiated after Anglo fended off a failed £39 billion ($49 billion) takeover bid by Australian rival BHP.
Botswana currently holds a 15% stake in De Beers, estimated by analysts to be worth $2.5 billion. While the government has expressed interest in raising its stake, it has not disclosed the extent of its planned increase. De Beers plays a critical role in Botswana’s economy. The company recently committed $1 billion to extend the life of its flagship Jwaneng mine by transitioning operations underground.
For the rest of this article: https://www.mining.com/anglo-american-nears-de-beers-spinoff-as-botswana-weighs-stake-rise/