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De Beers, the company that literally invented the idea that diamonds are forever, is about to learn that corporate valuations are not. Anglo American is in advanced discussions to sell its 85% stake in the legendary diamond miner for roughly $1 billion, a price tag that would have seemed laughable just a few years ago.
To put that number in perspective: Anglo American rejected a $50 billion takeover bid from BHP in 2024. Now it’s looking to offload one of its crown jewels for about 2% of that figure.
What’s actually happening
Anglo American CEO Duncan Wanblad has been publicly steering the company toward this moment for over two years. The formal sale process kicked off in May 2024, right after the company told BHP to take a hike on its mega-merger proposal. Wanblad has indicated the company would pursue either a trade sale or an alternative structure to exit the diamond business entirely.
As of February 2026, De Beers’ carrying value had been written down to $2.3 billion following multiple impairments. A $1 billion sale price would represent a steep discount even to that already-reduced figure, roughly 43 cents on the dollar.
Among the potential buyers is a consortium reportedly linked to former De Beers CEO Gareth Penny. That group is believed to be coordinating with the Botswana government, which holds the remaining 15% stake in De Beers.
How the diamond market lost its shine
The rough diamond market has been in a prolonged slump. Excess supply combined with reduced demand has hammered prices and forced De Beers to take impairment after impairment on its balance sheet.
Lab-grown diamonds have eaten into the natural diamond market. Consumers, particularly younger ones, have increasingly opted for stones that are chemically identical but cost a fraction of the price. De Beers itself launched a lab-grown line called Lightbox in 2018, but it was positioned as fashion jewelry rather than a serious competitor to its own natural stones.
Chinese demand, once a reliable growth engine for premium products including diamonds, has cooled considerably.
What this means for investors
For Anglo American shareholders, this sale is less about the price De Beers fetches and more about what Anglo does with the proceeds and the simplified portfolio. Wanblad’s restructuring thesis centers on concentrating the company around copper and other energy-transition metals.
For potential buyers, particularly the Penny-led consortium, buying De Beers at a fire-sale price could represent significant opportunity if rough diamond markets eventually recover. The brand itself, which essentially created modern diamond marketing with its “A Diamond Is Forever” campaign in 1947, retains significant intangible value that doesn’t fully show up on a balance sheet.
New owners would inherit all the structural challenges that drove Anglo to sell in the first place. The Botswana government’s 15% stake means any new majority owner will need to navigate a complex stakeholder relationship with a sovereign nation whose economy depends heavily on diamond mining. Botswana has historically used its leverage in De Beers negotiations to secure favorable terms for its mining operations and revenue sharing.
If De Beers trades at or below $1 billion, it sets a stark benchmark for how the market currently values natural diamond businesses, one that could ripple through valuations of other players in the space.
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