Botswana backs De Beers takeover bid as it doubles stake

Botswana is set to double its ownership of diamond company De Beers from 15 percent to 30 percent, positioning itself as the group's largest single shareholder under a proposed acquisition of Anglo American's stake. The proposed ownership structure would give Botswana a greater role in the company responsible for marketing the country's diamond production.

In a speech reported on by AP News, President Duma Boko confirmed the country's support for the Global Diamond Consortium, an investor group led by former De Beers chief executive Gareth Penny, which is seeking to acquire Anglo American's 85 percent holding. The transaction has not yet been finalised.

In a statement shared by the Botswana Presidency on Facebook, the government described the increase as a significant step in its minerals investment strategy. Boko further suggested that neighbouring diamond-producing countries Namibia and Angola would be involved in the proposed deal, additional details of which have not yet been disclosed.

Anglo American announced plans to sell its De Beers stake in 2024 as part of a wider restructuring amid declining demand for natural diamonds, increased competition from lab-grown alternatives and weaker luxury spending in China.