• Anglo American booked a $2.3 billion impairment on De Beers in 2025, following a $2.9 billion writedown in 2024.
• The group plans to complete a structured sale of De Beers in 2026 as part of a broader portfolio overhaul.
• Botswana and Angola have expressed interest in acquiring significant stakes, alongside international investors.

In its financial report published on Friday, February 20, Anglo American announced a new $2.3 billion impairment on De Beers, in which it holds an 85% stake. The company recorded this adjustment after it registered a previous $2.9 billion writedown in 2024. The group took this step as persistent weakness in the natural diamond market weighed on valuations, while it continued the divestment process for its subsidiary, which operates notably in Botswana, Namibia and Angola.

Global producers of natural diamonds have operated in a strained market for several years, particularly as laboratory-grown diamonds gained market share. Rising consumer interest in synthetic stones, combined with declining demand and prices for natural diamonds, has forced companies to revise production strategies. De Beers has adjusted output to match demand, and the company reduced production by 12% in 2025. These factors prompted the parent company to announce the new impairment.

“This impairment is due to lower forecast prices than previously expected, resulting from increased consumer preference for synthetic diamonds over natural diamonds, as well as a surplus of rough diamonds available relative to current demand,” Anglo American stated in its report.

What Impact on the Sale Process?

This new accounting adjustment comes as Anglo American reports progress in separating its diamond subsidiary. The mining group has implemented a restructuring plan for several months to refocus its asset portfolio and exit activities it considers non-core. This strategy led to the spin-off of Valterra Platinum in May 2025. The sale of De Beers represents one of the next milestones in this transformation.

At this stage, Anglo American has scheduled a structured sale process for De Beers, with completion targeted for 2026. The group has not disclosed the status of negotiations. Limited information allows investors to assess how successive impairments could affect transaction terms. These uncertainties carry added weight as several African states have already expressed interest in participating in the acquisition process.

Botswana, which hosts De Beers’ flagship production sites and holds a 15% minority stake, has signaled that it wants to use this opportunity to acquire a majority position. Angola has also announced its intention to acquire a 20% to 30% stake in the company. Stakeholders have even floated the idea of a “pan-African partnership” that would include other countries involved in De Beers’ operations, such as Namibia and South Africa.

At the same time, international investors have shown interest. Indian billionaire Anil Agarwal has emerged as a potential bidder, alongside Indian diamond firms KGK Group and Kapu Gems.

As diamond market indicators remain weak and prompt De Beers to lower its 2026 production guidance again, the outcome of these dynamics remains uncertain. Anglo American’s strategic decisions will likely prove decisive, particularly as the group simultaneously seeks to finalize its merger with Canada’s Teck Resources.

This article was initially published in French  by Aurel Sèdjro Houenou

Adapted in English by Ange J.A de Berry Quenum