De Beers Could Fetch About $1 Billion as Anglo American Nears Sale
Key Takeaways
- •De Beers could be sold for about $1 billion as Anglo American moves closer to a deal to divest the business.
- •De Beers was previously valued at more than $18 billion, underscoring the scale of the decline in its market value.
- •The diamond industry is experiencing one of its deepest and most prolonged downturns in decades.
- •Anglo American’s sale of De Beers would be part of a broader effort to reshape its portfolio around core assets.
De Beers, the former diamond monopoly once valued at more than $18 billion (C$25 billion), could sell for about $1 billion as Anglo American (LSE: AAL) nears a deal to offload the business amid the industry’s deepest downturn in decades.
The proposed valuation reflects the severe pressure facing the diamond market, which has been weakened by one of the most prolonged slumps in decades. Anglo American is said to be approaching a transaction to dispose of De Beers, which was long one of the most prominent names in the global diamond trade. For Anglo American, a sale would mark another step in reshaping its portfolio around assets it considers more central to its long-term strategy, while for the diamond sector the outcome will be watched as a sign of how far valuations have fallen from earlier peaks.
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