Anglo Considers Sale of Diamond Unit De Beers
Mining giant has had discussions with potential buyers, in a separate process from BHP’s takeover bid
Miner Anglo American is considering a sale of De Beers, its storied diamond unit that has recently struggled, according to people familiar with the matter.
The London-listed company has held conversations in recent weeks with potential buyers, including luxury houses and Gulf sovereign-wealth funds, the people said. Anglo has signaled to potential suitors that it is open to offers, according to the people.
The discussions are at an early stage, some of the people said, and a valuation hasn’t been discussed. An eventual buyer might be a combination of a luxury house and a financial investor, one of the people said. The names of potential bidders couldn’t be learned.
Anglo said Thursday it had received an all-share offer from BHP, contingent upon it spinning off shareholdings in two South Africa-listed units, Anglo American Platinum and Kumba Iron Ore. The potential deal could reshape the global mining industry. De Beers wasn’t specifically mentioned in BHP’s offer, but it would be included in a potential takeover. Anglo’s discussions about the diamond unit are believed to have been separate from that takeover bid.
Anglo has been conducting a widespread review of its assets as lower commodity prices have ripped across the industry, prompting production cuts at the miner. The market for diamonds has been particularly affected, and in February, Anglo said it would take a $1.6 billion impairment charge on De Beers.