Angola entry heats up De Beers’ bidding war
Mbongeni Mguni - Lewanika Timothy | Thursday October 2, 2025 10:43
Angola represents De Beers’ brightest prospects for the future with the highest chances of hosting the next “megamine,” while Botswana continues to anchor the group’s production, having contributed two thirds of output for decades.
Botswana's mines require billions of Pula in capital to extend their lives for the next couple of decades, while De Beers’ ground in Angola is yet to yield an operation and will similarly require investment going into the future.
Anglo American is exiting De Beers after a 99-year partnership, opting to focus on base metals, particularly copper, which are highly sought after globally. Anglo holds 85% equity in De Beers, while the Government of Botswana owns the balance.
On Tuesday, President Duma Boko told Bloomberg in New York that Botswana is seeking a controlling stake in De Beers, under the view that diamonds are a nationally strategic asset.
“We are more than ready for the transaction and we’ve said the transaction must be concluded by the end of October. It’s a matter of economic sovereignty for Botswana,” he told Bloomberg TV.
The President also said government is in talks with various partners and financiers to secure the additional equity from De Beers.
“We have lined up a number of potential collaborators with us,” Boko said. “We have targetted funders, parties, the Oman SWF and others who are willing and ready to come on board with us.”
A day after the President’s remarks, Angola’s Minerals minister, Diamantino Pedro Azevedo, issued a statement confirming the coastal nation’s ambitions for a minority stake in De Beers. The statement stressed that the bid was “fully financed” meaning Angola can demonstrate the finances to back its offer.
The Minister hinted that Angola was opposed to a state taking over majority control of De Beers.
“Angola believes De Beers’ future depends on remaining a private-sector-led, global company,” he said. “Our bid is designed to foster a partnership in which Botswana, Namibia, South Africa and Angola all participate meaningfully - ensuring that no single party dominates and that the company can grow as a truly international commercial entity.”
The entry of two diamond producing sovereigns into the race for De Beers, has captured the diamond world, with a litany of analyses being produced this week.
Botswana holds pre-emptive rights in De Beers, which insiders however say are not unlimited.
“Botswana has the right to make an offer for shares being sold by Anglo first, but not to the extent of taking up that 85%. “There’s a limit to the pre-emptive rights and it may not be enough to give Botswana controlling interest even when fully exercised,” an analyst following the latest developments told Mmegi.
Boko has said Botswana is aiming for more than 50%, which is technically what is required to hold controlling interest in the diamond group.
Other industry insiders said Angola’s move was designed to simply prevent Botswana from taking a controlling interest, while climbing onto the share registry in order to influence strategy. There is also a view that Botswana and Angola could work together as sovereigns to take up equity interest, possibly also bringing in a private financier on board.
“There is a reason why Angola has emphasised that their bid is fully financed. A subsidiary of the Oman Sovereign Wealth Fund actually helped Angola buy out the Russians from their diamond mines. “Botswana says its also looking to the same Fund, amongst other partners. “There could be room to talk between the two sovereigns and discuss strategic interests,” an analyst said.
Anglo American is said to be preparing a shortlist of bidders for De Beers, as part of a target to identify the new takeover partner before the end of the year. In July, Anglo American CEO, Duncan Wanblad, said the group was engaging with a credible set of interested parties in a formal process.
“In parallel we have been engaging with the government of Botswana in respect of its interest to increase its shareholding in De Beers. “A trade sale absolutely remains our preferred exit route for the business but only if we can find the right buyer on the right terms,” he said.