Anglo American is to acquire an additional 40 per cent interest in De Beers for a total cash consideration of US$5.1 billion.
The move comes after Botswana’s government declined to take up its pre-emptive rights to acquire an additional shareholding in De Beers.
Anglo’s additional interest now takes its total stake to 85 per cent.
Commenting on the deal, Cynthia Carroll, Anglo American’s CEO, said: "The innovative partnership between Anglo American and the Government of the Republic of Botswana, as the shareholders in De Beers, is a clear demonstration of the level of commitment of the GRB to the long term prosperity of the world’s leading diamond company.
“We look forward to strengthening this longstanding and proven partnership which provides a close alignment of interests between Anglo American and Botswana and builds upon the ten year sales agreement between De Beers and the GRB in relation to Debswana’s production."
Botswana’s minister of Minerals, Energy, and Water Resources Dr. Ponatshego H Kedikilwe said: "The diamond industry is a major contributor to our economy in Botswana and De Beers is the world’s premier diamond company. We look forward to building on the excellent relationship we have with Anglo American, both through our ownership of De Beers and through the Debswana joint venture, and to sharing in De Beers’ highly attractive long term prospects."
The transaction is expected to complete during September 2012, unless an earlier date can be agreed.
