Botswana courts UAE, Oman to finance De Beers bid

Botswana Courts UAE and Oman to Help Acquire De Beers Stake

Botswana is in talks with the United Arab Emirates and Oman as potential financing partners to help the diamond-rich nation acquire a controlling stake in De Beers from Anglo American, which is selling its 85% holding in the 138-year-old diamond producer, according to a Bloomberg report published Thursday.theedgemalaysia

President Duma Boko has identified Gulf states as key allies in the effort, which would give Botswana majority ownership of a company central to its economy. Diamonds account for roughly 80% of Botswana’s export revenue, and the country already holds a 15% stake in De Beers.

Gulf Financing Takes Shape

Boko traveled to Oman in April to meet with Sultan Haitham Bin Tariq Al Said, signing cooperation agreements covering solar energy, minerals, and oil partnerships ahead of Anglo American’s April 16 deadline for bids on the De Beers stake. The president has also visited the UAE, with his office describing the trip as aimed at strengthening economic ties.facebook

Botswana has held parallel discussions with Namibia and Angola, both diamond-producing nations that have expressed interest in acquiring equity in De Beers.facebook

Sale Process Nears Resolution

De Beers CEO Al Cook said at the JCK show in Las Vegas last week that he expects an announcement on the company’s separation from Anglo American “in the very near future,” adding that all potential buyers are “deeply invested in, expert in, and passionate about diamonds.”substack

Anglo American announced plans to divest De Beers in May 2024 as part of a broader restructuring to focus on critical minerals, primarily copper. The company has since booked cumulative impairments exceeding $5 billion on the diamond unit amid a prolonged market downturn. CEO Duncan Wanblad said in April that Anglo American “is committed to divesting De Beers” and expects to provide an update “through the course of 2026.”ecofinagency

Risks and Rivals

Botswana holds pre-emptive rights over Anglo American’s entire De Beers stake, but securing control is not guaranteed, according to people familiar with the matter cited by Bloomberg. The country faces fiscal constraints, having run budget deficits under the previous administration, and acquiring the full 85% stake would require outside capital — hence the Gulf courtship.mining

Boko has said Botswana intends to acquire all of Anglo American’s shares and then allocate portions to partners including Angola. The bid represents a test of economic sovereignty for the southern African nation at a moment when the global diamond market remains under pressure from lab-grown competition and weak consumer demand.facebook