Anglo American buys De Beers

Anglo American and CHL Holdings, which represents the interests of the Oppenheimer family, have announced that Anglo American will acquire an incremental interest in De Beers. The acquisition will increase Anglo American’s current 45% shareholding in De Beers to up to 85%.

Anglo American has entered into an agreement to acquire the Oppenheimer family’s 40% interest in De Beers for a total cash consideration of US$5.1 billion. Under the terms of the existing shareholders’ agreement between Anglo American, CHL and the Government of the Republic of Botswana (GRB), the GRB has pre-emption rights that enable it to participate in the transaction and to increase its interest in De Beers, on a pro-rata basis, to up to 25%. In the event that the GRB exercises its pre-emption rights in full, Anglo American would acquire an incremental 30% interest in De Beers that would take its total interest to 75%, and the consideration payable by Anglo American to the CHL Group would be reduced proportionately.

Cynthia Carroll, chief executive of Anglo American, said: “I believe that the benefits brought by Anglo American’s scale, technical, operational and exploration expertise and financial resources, combined with the unquestionable leadership of De Beers’ business and iconic brand will enable De Beers to enhance its position across the diamond pipeline and capture the potential presented by a rapidly evolving diamond market.”