Mining giant Anglo American has agreed to acquire the Oppenheimer family’s 40 per cent interest in De Beers for US$5.1 billion, taking its own stake up to 85 per cent.
UK-based Anglo American has been the company’s largest shareholder since De Beers became a private company in 2001 and a longstanding shareholder prior to that. The company said it is well positioned to enhance the value of De Beers through its expertise and scale in such areas as technical, supply chain and financial management functions, as part of a simplified and more integrated ownership structure.
De Beers’ portfolio comprises large scale, low cost mining assets with proven distribution, sales and marketing capabilities and further potential from its leading pipeline of greenfield and brownfield projects and an expanding consumer-facing footprint, Anglo American said.
Cynthia Carroll, chief executive of Anglo American, said: “This transaction is a unique opportunity for Anglo American to consolidate control of the world’s leading diamond company—De Beers. Today’s announcement marks our commitment to an industry with highly attractive long term supply and demand fundamentals. Underpinned by the security of supply offered by a new 10-year sales agreement with our partner, the government of the Republic of Botswana, this forms a compelling proposition.”
She went on to say: “I believe that the benefits brought by Anglo American’s scale, technical, operational and exploration expertise and financial resources, combined with the unquestionable leadership of De Beers’ business and iconic brand will enable De Beers to enhance its position across the diamond pipeline and capture the potential presented by a rapidly evolving diamond market.”
Sir John Parker, chairman of Anglo American, added: “The purchase of an incremental interest in De Beers is fully aligned with the Board’s strategic priorities. The value created in De Beers and the diamond industry by the Oppenheimer family over the past century has been a remarkable achievement. We look forward to increasing our involvement in the business and building strong links and relationships with De Beers’ Sightholders and partners.”
Anglo American said it would work closely with governments through De Beers’ joint venture partnerships in Botswana and Namibia and with De Beers’ BEE partners in South Africa to share expertise and tailor programmes to employees and the wider communities as appropriate.
Anglo Americanis one of the world’s largest mining companies, with a portfolio of mining businesses spanning bulk commodities and precious metals & minerals. The company’s mining operations and extensive pipeline of growth projects are located in southern Africa, South America, Australia, North America and Asia.
De Beers is the world’s leading diamond company, operating in more than 20 countries and employing more than 16,000 people. It is the world’s leading diamond producer with mining operations across Botswana, Namibia, South Africa and Canada.
