Daily Management Review

WSJ: Anglo American is considering selling De Beers


The Wall Street Journal reports, citing sources, that Anglo American is contemplating the prospect of selling its diamond mining business, De Beers.

It was previously reported that Anglo American was approached by BHP Group, the biggest mining corporation globally, about merging through a share exchange.

Anglo American has reportedly been in discussions with Gulf sovereign wealth funds and producers of luxury products as prospective De Beers purchasers in recent weeks, the sources say.

The corporation has communicated to prospective purchasers that it is prepared to review their proposals.

The discussions are still in their early stages and valuation of De Beers has not yet been covered.

According to one of the sources, De Beers may eventually be acquired by a consortium comprising a luxury products company and a financial investor.

Anglo American is valued at $39 billion in BHP's offer, which makes the assumption that De Beers will be involved. The WSJ pointed out that Anglo American's talks to sell De Beers are probably unrelated to BHP's bid.

source: wsj.com