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De Beers could fetch just half of its  $4.9bn valuation:FT report

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Anglo American Plc is expected to launch the formal sale process for its struggling De Beers diamond division within weeks, but mounting industry challenges could force the UK-based mining giant to accept 50 per cent of  the unit’s $4.9 billion book value, according to a Financial Times report.

The diamond division, once a crown jewel of Anglo American’s portfolio, may fetch as little as $2.5 billion in a sale—roughly half its current book valuation. This dramatic discount reflects the severe headwinds facing the global diamond industry, including weakening consumer demand and intensifying competition from laboratory-grown diamonds that are reshaping the luxury market.

The potential sale price represents a stunning fall from grace for De Beers, which was valued at $7.6 billion as recently as December 2023. Since then, Anglo American has been forced to write down the division’s value twice, highlighting the rapid deterioration in market conditions.

The diamond divestiture is part of Anglo American’s broader strategic transformation, accelerated after successfully fending off a takeover attempt by mining rival BHP Group last year. The failed $49 billion bid prompted Anglo American to embark on an aggressive portfolio restructuring aimed at focusing on higher-margin, growth-oriented assets.

While a direct sale remains Anglo American’s preferred strategy, the company is keeping all options open, including a potential initial public offering that could allow it to retain partial ownership while accessing public markets for capital. The flexibility suggests management recognizes the challenging sale environment and wants to maximize value regardless of the exit mechanism.

Anglo American has assembled a heavyweight advisory team including Morgan Stanley, Goldman Sachs, and Centerview Partners to navigate the complex transaction, signaling the strategic importance of achieving the best possible outcome.

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DiamondBuzz

India Has Emerged As The Most Important Startup Market In LGD Segment, Home To 70 Lab-Grown Diamond Companies

Surat Has Developed An Extensive Ecosystem Over Several Decades. LGD Give This Ecosystem An Opportunity To Move Into A New Segment Of The Global Diamond Economy.

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According to startup intelligence platform Traxcn, the global Lab Grown Diamond brands sector comprises 158 companies, including 23 funded companies that have collectively raised more than $229 million over the past decade. Of these, 12 have reached Series A funding or beyond, indicating the category has moved well beyond experimental startups.

India is home to 70 lab-grown diamond companies—the highest number in any country. The United States follows with 37, the United Kingdom has 14, the UAE nine, Australia five, and China three.

Data shows 22 lab-grown diamond companies were founded in 2023—the highest number in any year over the past decade. That was followed by 11 in 2024 and seven in 2025. In 2026, only one new startup had been founded so far, according to Traxcn.

The numbers underline India’s considerable advantage. The country has long been one of the world’s most important centres for the diamond business, particularly in cutting and polishing. Surat has developed an extensive ecosystem of manufacturers, skilled workers, exporters and jewellery businesses over several decades. Lab-grown diamonds give this ecosystem an opportunity to move into a new segment of the global diamond economy.

The sector received approximately $43.6 million in 2019, before funding fell sharply to $4.76 million in 2020. It recovered to $16.4 million in 2021 before peaking in 2022. Funding then dropped substantially—just $1.1 million in 2023 and $7.1 million in 2024—before rebounding sharply in 2025.This volatility suggests investors are still trying to understand the long-term economics of the industry.

Lab-grown diamonds are evolving beyond a single business category. The sector includes manufacturers, technology companies, exporters, retailers and consumer-facing jewellery brands. Their economics and risks are very different. Manufacturers invest heavily in technology, machinery and production capacity, while jewellery brands spend on design, marketing, stores and customer acquisition.

Traxcn data highlights another divide: India has more companies, while the US has attracted more capital. India has 70 lab-grown diamond companies compared with 37 in the US and 14 in the UK. The US has received about $126 million in funding over the past decade, compared with $97.2 million for India. Globally, the sector comprises 158 companies that have collectively raised more than $229 million.

Yet the industry’s biggest advantage—affordability—could also become its biggest challenge. As manufacturing technology improves and capacity expands, production costs and diamond prices can decline. Lower prices may stimulate demand, but they can also compress margins and reduce the value of existing inventory.

This changes the competitive equation. As stones become increasingly standardised, the battle may shift from who makes the diamond to who creates the strongest consumer proposition. Design, certification, trust, retail experience, after-sales service and branding could become increasingly important.

The experience of platinum offers a useful lesson. Marketing helped create a distinct consumer proposition around platinum, but changing preferences and price movements later challenged its position.

For lab-grown diamonds, the central question is therefore not simply how much demand can be created, but whether companies can build lasting brand value and healthy margins around a product whose supply can continually expand. The technology may make diamonds cheaper; the brand will determine where the value ultimately resides.

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JewelBuzz is Asia’s First Digital Jewellery Media & India’s No.1 B2B Jewellery Magazine, published by AM Media House. Since 2016, we’ve been the trusted source for jewellery news, market trends, trade insights, exhibitions, podcasts, and brand stories, connecting jewellers, retailers, and industry professionals worldwide.

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