Editor’s Note
The diamond industry faces a pivotal moment as De Beers, a historic leader, enters a sale process. This development reflects broader market pressures, including shifting consumer demand and the rise of lab-grown alternatives. We will continue to monitor this story and its implications for the global luxury sector.
Global diamond company De Beers has entered a sale process. This move is analyzed to be a response to worsening profitability due to slowing diamond demand and the proliferation of cheaper lab-grown diamonds.
On the 9th (local time), the Financial Times (FT) reported that Anglo American, the UK mining company and De Beers’ largest shareholder, is in discussions with a public-private consortium regarding the sale of its stake in De Beers. Anglo American holds approximately 85% of De Beers.
FT reported that this sale is part of a restructuring plan announced by Anglo American in 2024. Anglo spun off its platinum business unit, Amplats (now Valtera), in June last year, and its plan to sell its Australian metallurgical coal mines has been delayed after the intended buyer, Peabody Energy, withdrew following a fire at the Moranbah North mine.
CEO Duncan Wanblad has reportedly expressed his desire to finalize the stake sale within this year.
Founded in 1888, De Beers has led the global diamond market. The group integrated operations from mining to distribution and marketing, and through advertising slogans like “Diamonds Are Forever,” it established diamonds as a symbol of engagement, marriage, and love.
However, the diamond market has recently been experiencing a downturn. As consumer spending on high-end luxury goods slows, the rise of cheaper, mass-producible lab-grown diamonds is putting pressure on the industry. Last year’s US tariffs on India, the world’s largest diamond processing country, also had a negative impact.
According to jewelry industry statistics, over half of the diamond rings sold in the US market in 2025 were made with lab-grown diamonds. In this environment, natural diamond prices have fallen sharply. According to jewelry market information firm Rapaport, natural diamond prices in 2025 fell by approximately 24.1% compared to the previous year.
According to De Beers’ Q4 2025 production report, the average realized price was $142 per carat, a 7% decrease year-on-year. This was largely influenced by a 12% decline in the rough diamond price index.
Anglo American assessed that “selling inventory below cost further exacerbated the decline.” It further diagnosed that “the diamond trading environment remains challenging due to overall industry weakness, geopolitical tensions, and tariff uncertainties,” suggesting that impairment charges may be reflected in the annual results.
Key parties showing interest in acquiring a stake in De Beers are African nations where its mines are located. The government of Botswana, which already holds a 15% stake in De Beers, has expressed its intention to increase its share. The Angolan government aims to secure a 20-30% stake, and the Namibian government, which accounts for about one-tenth of De Beers’ diamond production, is also reviewing the acquisition of a partial stake.