Anglo starts talks with banks on possible De Beers IPO

Anglo American Plc has begun initial talks with banks about listing its De Beers diamond unit, according to people familiar with the matter, as the company looks to move ahead with the final and most difficult piece of its radical restructuring.

Anglo is pursuing a dual-track process in its effort to exit De Beers by trying to find a buyer for the struggling business, while also starting preparations for an initial public offering as a backup solution.

Anglo promised investors last year it would get out of the diamond business, as part of a sweeping overhaul outlined by chief executive officer Duncan Wanblad as he fended off a $49 billion approach from BHP Group. The company has since agreed to sell its coal and nickel mines and is on course to exit platinum later this year — leaving only De Beers on the list.

Anglo has now started started engaging with major banks about working on a De Beers public listing, said the people, who asked not to be identified discussing private information.

A spokesman for Anglo American declined to comment.

An exit from De Beers is proving to be the hardest part of Anglo’s restructuring. The diamond industry is grappling with its deepest crisis in decades and a collapse in Chinese demand and fierce competition from synthetic stones has hammered De Beers’ profits in recent years.

Anglo recently took a $2.9 billion impairment on the value of De Beers, after last year announcing a $1.6 billion writedown.

Wanblad has emphasized that the company is not in a rush to find a solution for De Beers, as it doesn’t want to destroy value by moving too quickly while the market remains weak. In February, he said Anglo didn’t expect much progress in exiting the business in the first half of 2025, but hoped its plans to exit would accelerate later in the year.

(By Thomas Biesheuvel and Dinesh Nair)