Gov’t weighs options as De Beers race peaks
Mbongeni Mguni | Monday July 27, 2026 06:00
Sources close to the transaction told BusinessWeek that Anglo American’s selection of the Global Diamond Consortium as preferred bidder did not mean talks with other parties were closed off. BusinessWeek has established that the consortium is led by former De Beers CEO, Gareth Penny, an experienced diamond veteran with experience up and down the industry’s pipeline.
Responding to supplementary questions in Parliament on Friday, Minister for State, Defence and Security, Moeti Mohwasa, said Botswana had engaged globally renowned advisory, Lazard and Swiss-based CBH Bank, as core advisors for the due diligence.
The exercise, due to be complete by the end of September, will assess the optimal structure, the extent of government’s participation in the De Beers transaction and the value of the transaction in the best interest of Botswana and its people, he said.
“Diligence has been conducted systematically across the operations, with the valuation adjusted appropriately to reflect the current state of the business,” Mohwasa told legislators. “The government of Botswana and its advisors are finalising their assessment of the financing options available, to secure the solution that best serves the Government of the Republic of Botswana's interests in the most attractive terms.”
He added: “Any financing decisions will be considered fully within the Government of the Republic of Botswana's broader financing and debt strategy to ensure alignment with the country's overall fiscal and debt management priorities”.
Information reaching BusinessWeek indicates that Global Diamond Consortium’s proposal envisages partnership with Angola and Namibia. Penny, who was with De Beers and Anglo American for 22 years, with the last five as group CEO of De Beers, reportedly presented a compelling proposal for the iconic company’s recovery and growth trajectory.
Government, meanwhile, as a 15% shareholder in De Beers, has been engaging with Anglo American to evaluate all bids received, including that of the preferred bidder. Government says it retains complete freedom to proceed either alongside the preferred bidder as a partner or to exercise its pre-emption rights alone or with a third party.
Botswana, which is De Beers’ anchor in terms of production, has a pre-emptive right to increase its stake to up to 80% and is using due diligence to decide its next steps.
“If government cannot agree on the buyer, government's acquisition will be on exactly the same terms, including price, as those agreed with the buyer selected by Anglo-American,” Mohwasa told Parliament in response to supplementary questions.
He added that government was focused on returning De Beers to sustainable profitability through the appointment of an experienced operator, strong financial backing, and a clear business plan. The government also wants to increase Botswana's strategic influence over assets of national importance, including the supply chain and beneficiation within the country's own borders.
Other objectives include broadening Botswana's economic and social participation across the value chain, creating a platform to tell Botswana's story to the world with confidence and ensuring the transaction is financially attractive to the nation through a “sensible, counter-cyclical valuation, a limited call on the public purse, appropriate risk sharing and no undue concentration of national exposure”.
“The final assessment and approval of any transaction will rest with the President of this Republic and Cabinet,” Mohwasa said in Parliament.
Anglo has been eyeing a divestment of its 85% stake in De Beers since 2024, as part of a group-wide overhaul of portfolio aimed at retaining key assets. De Beers, in which Anglo has held an interest for more than 90 years, has struggled since the third quarter of 2023 under strain from a confluence of factors including the incursion of lab-grown diamonds, particularly in the smaller stones category.
The company’s fortunes are tightly linked with Botswana, which boasts decades of minerals excellence, as well as a strong governance reputation and the ethical global repute required for the comeback campaign for natural diamonds. Ends...