DiamondBuzz
Anglo American cuts book value of De Beers to $2.3bn, reflects a convergence of structural and cyclical pressures
Anglo American has written down the book value of De Beers for the third consecutive year, slashing it from $4.1bn to $2.3bn — a 44% reduction — as the diamond miner reported a catastrophic swing from a $25m EBITDA profit in 2024 to a $511m loss in 2025. This impairment brings the cumulative destruction of De Beers’ book value to approximately $6.9bn since 2023, when it stood at $9.2bn.
The deterioration reflects a convergence of structural and cyclical pressures: weak consumer demand, falling rough diamond prices, inventory overhang, growing competition from lab-grown diamonds, and the headwinds of US tariffs on Indian exports — the world’s primary diamond cutting and polishing hub. Anglo American’s CEO Duncan Wanblad has confirmed De Beers is in advanced sale discussions, with the possibility of a staged divestment in two or three tranches.
A central paradox defines De Beers’ 2025 results: revenue grew 6% to $3.5bn, yet the business collapsed into deep loss. This disconnect is explained by the composition of sales. Sales volumes surged 17% to 20.9m carats as the company executed stock rebalancing initiatives — essentially clearing accumulated high-cost inventory at sharply discounted prices. The average per-carat realised price fell 7% from $152 to $142, reflecting both weaker market prices and the deliberate sale of lower-quality, lower-value stones.
The stock rebalancing programme alone generated $424m in trading losses, as diamonds acquired and cut at higher cost were sold at prices below their carrying value. This single line item accounts for the overwhelming majority of the $536m swing in EBITDA.
Anglo American CEO Duncan Wanblad confirmed in the February 2026 earnings call that the company is in advanced discussions with a select group of interested parties regarding the sale of De Beers. This follows Anglo’s strategic decision to simplify its portfolio by divesting non-core assets, a process accelerated by a hostile takeover approach from BHP in 2024.
Wanblad’s indication that the sale may occur in two or three tranches — rather than a single transaction — is significant. A staged divestment could reflect:
• difficulty in finding a single buyer willing to take the full stake at an acceptable valuation
• a desire to maximise aggregate proceeds by selling to different buyers with different strategic motivations
• regulatory constraints in relevant jurisdictions
With the book value now at $2.3bn and the business generating a $511m EBITDA loss, prospective buyers face the challenge of pricing an asset through the trough of a cycle in a structurally disrupted sector. Potential buyers may include:
- Sovereign wealth funds seeking long-duration commodity exposure
- Private equity consortia with a turnaround thesis
- Industry consolidators, potentially including Government of Botswana (which holds a 15% stake) or luxury conglomerates
- Strategic investors from emerging market diamond consumer nations
DiamondBuzz
De Beers Sale Could Take 18 Months To Clear Regulatory Hurdles: Duncan Wanblad
The strategic divestment of De Beers highlights the persistent friction between corporate portfolio optimization and multi-jurisdictional regulatory compliance.
The long-awaited sale of De Beers could easily take 18 months to clear regulatory hurdles, says Duncan Wanblad, CEO of parent company Anglo American, once a deal is finally agreed.
Wanblad has, however, insisted that the company is not exclusive with any consortium and that more than one group remains involved in the process.
The strategic divestment of De Beers by Anglo American highlights the persistent friction between corporate portfolio optimization and multi-jurisdictional regulatory compliance.
Initiated in May 2024 as part of a sweeping restructuring, Anglo’s decision to offload its loss-making diamond unit was designed to sharpen capital allocation around core, high-margin assets like copper and iron ore.
However, CEO Duncan Wanblad’s candid assessment underscores a critical transactional reality: securing a signed agreement is merely the precursor to a prolonged regulatory clearance phase.
While Anglo American maintains a target to agree on deal terms by the end of 2026, market expectations regarding transaction completion require re-calibration. Antitrust approvals across key diamond consumption and trading hubs—most notably the United States, China, and the European Union—could extend the execution window by up to 18 months post-signing.
Given De Beers’ historical market concentration and influence across global supply chains, international competition authorities will undoubtedly subject any structural change in ownership to intense scrutiny.
Although the Global Diamond Consortium, spearheaded by former De Beers managing director Gareth Penny, has positioned itself as a primary contender, Anglo American has deliberately avoided granting exclusivity. While maintaining multiple bidding tracks preserves commercial leverage, it delays the precise regulatory preparation required for closing. Formal filings cannot be finalized until the specific jurisdictional footprint and capital background of the acquiring consortium are locked in.
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