Vedanta's Anil Agarwal Joins the Race to Buy Diamond Giant De Beers

Indian mining tycoon and billionaire Anil Agarwal has entered the crowded race to acquire African–British diamond giant De Beers, currently owned by Anglo American Plc. The London-based miner began exploring a strategic sale of the company last year amid mounting financial challenges.

According to a Reuters report, Vedanta Chairman Agarwal is part of one of six consortiums bidding for De Beers. Other interested parties named in the report include Indian diamond firms KGK Group and Kapu Gems, as well as Qatari investment funds.

A separate report by Bloomberg states that former De Beers CEOs Gareth Penny and Bruce Cleaver, along with Australian mining executive Michael O’Keeffe, are also among the bidders. Gareth Penny now serves as chairman of Ninety One, a global investment firm managing over $175 billion in assets. Bruce Cleaver, De Beers CEO from 2016 to early 2023, currently chairs Gemfields, a leading miner of emeralds and rubies.

Michael O’Keeffe, a seasoned mining executive, is the chairman of Burgundy Diamond Mines, which owns Canada’s Ekati mine. He previously led Riversdale Mining, which was sold to Rio Tinto for $3.7 billion in 2011.

Why Is Anglo American Selling De Beers?

Anglo American Plc owns 85% of De Beers, with the remaining 15% held by the Republic of Botswana. Anglo acquired its majority stake in 2011 by purchasing 40% from South Africa’s Oppenheimer family. In May 2024, the company announced plans to sell or spin off the diamond business as part of a broader strategic overhaul.

The decision came shortly after Anglo American rejected a $49 billion takeover bid from Australian mining company BHP. Following this, CEO Duncan Wanblad initiated a restructuring plan aimed at simplifying operations.

The sale of De Beers is expected to be completed by the end of 2025, with potential options including a trade sale, demerger, or initial public offering.

Anglo American’s Q1 Performance

Anglo American reported mixed results for Q1 2025. In its core businesses, copper production declined 15% year-on-year to 169,000 tonnes, while iron ore output edged up 2% to 15.4 million tonnes. Manganese ore production fell sharply by 60%.

Among businesses Anglo is exiting, production of platinum group metals dropped 17%, and steelmaking coal fell 41%. Nickel output, however, rose marginally by 3%.

In the same quarter, De Beers experienced a sharp downturn in both production and sales. Diamond production fell 11% year-on-year to 6.1 million carats, with notable declines in Botswana, South Africa, and Canada. Sales volumes also dropped, with the company selling 4.7 million carats of rough diamonds, generating $520 million in revenue — a 44% decline compared to the same period in 2024.

This slump was driven by a 38% fall in the average realised price per carat, affected by changes in the sales mix and a 15% drop in the De Beers price index.