The Botswana government is nearing the end of its review of Anglo American's proposed sale of its 85 percent stake in De Beers. Due diligence is expected to conclude by the end of September. The transaction could close in the fourth quarter of 2026. Botswana has hired Lazard and Compagnie Bancaire Helvétique to advise on buying all or part of De Beers. The reported price for Anglo American's stake is about $1 billion.
The possible sale of De Beers is a significant decision for Botswana, as the company is at the heart of the country's diamond economy. The government must decide whether to join the preferred bidder, exercise its pre-emption rights and buy Anglo American's stake, or pursue another ownership structure. Botswana owns 15 percent of De Beers and has pre-emption rights over Anglo American's shares, giving it leverage as Anglo American exits the diamond business.
There has been a public disagreement over who is leading the sale process. In July, Moeti Mohwasa, minister for State President, Defence and Security, told Parliament that Anglo American had selected the Global Diamond Consortium as its preferred bidder. However, Anglo American Chief Executive Duncan Wanblad later said the company was not negotiating exclusively with one consortium and still had multiple bidders.
Botswana's options remain open until definitive agreements are reached. The government could proceed alongside a preferred bidder, exercise its rights alone or with partners, or pursue another structure. The key decision may not be whether to buy, but how much control to seek. Botswana could remain a minority shareholder while partnering with a private consortium, acquire a larger stake with outside investors, or seek full control of De Beers.
The relationship between Botswana and De Beers is strengthened by the 2025 agreement between Botswana and De Beers, which extended Debswana's mining licences through 2054 and increased the share of rough diamonds available to the state-owned Okavango Diamond Company. The agreement also created a Diamonds for Development Fund to support economic diversification. This framework makes the ownership transition more complicated.
De Beers is not merely a collection of mines, brands and sales operations; its relationship with Debswana affects how diamonds are marketed, investment in Botswana's mines and the value of the government's 15 percent stake. The buyer will be judged on more than its ability to pay; Botswana must assess whether it has enough capital to support De Beers through a prolonged downturn, access to international markets and a credible strategy for maintaining demand for natural diamonds.
Anglo American has reportedly written down the value of De Beers by $2.3 billion, while reports have valued its 85 percent stake at about $1 billion. De Beers reported an underlying EBITDA loss of $113 million in the first half of 2026 after a decline in its average rough-diamond price index. The company's challenge is not simply mining diamonds; it is restoring the link between supply, price and consumer demand that once made the business highly profitable.
Key points
- The Botswana government is set to conclude its review of Anglo American's De Beers sale by end-September.
- The possible sale of De Beers could affect the commercial and political arrangements supporting Botswana's main export industry.
- The buyer of De Beers will need to demonstrate its ability to support the company through a prolonged downturn and maintain demand for natural diamonds.
