Anglo deal leaves Botswana in double bind

The Botswana Government has up to 12 months to decide whether to use the option of increasing its stake in De Beers from the present 15 percent to 25 percent. Should it decide to, government will have to part with P9.5 billion ($1.275 billion) for part of the Oppenheimer stake while Anglo will pay $3,825 billion for the balance.

So far, government has not given any indication regarding use of the pre-emption right, saying only that it will weigh its options in the coming months. Between now and the time the decision is made, the journey will be a tight rope of the pros and cons of committing resources to a De Beers that would be 75 percent owned by Anglo American.