Following the announcement by Anglo American regarding its intention to explore a range of options to separate from the De Beers business, De Beers Group has affirmed that it remains fully focused on delivering its strategy and creating value in the interests of all its stakeholders.
De Beers Group CEO, Al Cook, said the announcement from Anglo American opens up new possibilities under new ownership.
“But some things will not change,” Cook said.
“We will continue to deliver value for all our stakeholders, including our partners in Botswana, South Africa, Namibia, Canada, Angola and other countries. In particular, we look forward to finalising our transformational agreement with the Government of the Republic of Botswana, who hold a 15 percent ownership interest in De Beers.”
Cook stated that De Beers has led the diamond industry for more than a century and has unparalleled expertise, outstanding assets across more than 20 countries, a unique sales model and an iconic brand, synonymous with diamonds.
“I am confident that we will remain the diamond leader for the next century.”
“Later this month, we will present the new strategy for De Beers. Diamonds remain some of the most desired products around the world, and I am excited by the opportunity we have to bring their magic to a new generation.”
Anglo, which owns 85 percent stake in De Beers said on Tuesday that it is exploring a variety of options including separating De Beers in order to set it up for success.
“Having made significant progress towards finalising the sales agreement with the Government of the Republic of Botswana, Anglo-American is exploring the full range of options to separate the business to set it up for success in unlocking full value from its new origins strategy, its world-class assets and its iconic brand,” Anglo said in a statement.
“This will provide both Anglo American and De Beers with a new level of strategic flexibility to maximise value for both company’s shareholders.”
Plans to divest from De Beers come as Anglo announced it is setting out a clear, compelling and decisive plan to unlock significant value from its portfolio and accelerate the delivery of consistently stronger shareholder returns.
Following the completion of the asset review initiated in 2023, Anglo-American said it plans to implement a number of major structural changes to accelerate delivery against its strategic priorities of operational excellence, portfolio simplification, and growth.
Anglo Chief Executive, Duncan Wanblad, said Anglo American’s shareholders will see the full undiluted upside from these extensive changes, with the value of copper and iron ore assets brought to the fore.
“This next step in the transformation of Anglo American’s portfolio is set to accelerate the recognition of value that has been inherent in our business for many years and provide Anglo American’s shareholders with undiluted and differentiated participation in the major structural demand trends,” said Wanblad.
“These actions represent the most radical changes to Anglo American in decades. I believe these are the right decisions to position Anglo American to capitalise on the outstanding resource endowment opportunities within our portfolio today.”
The planned change comes as Anglo twice thwarted advances from BHP Group for a possible takeover.
