Leslie Hook and Camilla Hodgson in London Published June 8 2025 Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Anglo American is set to start the formal sale process for De Beers within weeks, forging ahead with its plan despite a dismal diamonds market that could see the business fetch less than half its paper valuation. Two former chief executives of De Beers were putting together separate bids for the company, but people familiar with the process cautioned that they had not secured financing for a deal, casting doubt on whether their interest will translate to formal offers. De Beers has a book value of $4.9bn, but the poor conditions in the diamond market mean that Anglo may struggle to sell its 85 per cent stake at even half that valuation, according to bankers. London-listed Anglo has taken two writedowns on De Beers in the past two years as global diamond sales slumped in the years after the Covid-19 pandemic, weighed down by competition from synthetic diamonds and poor demand in China and the US. Despite cutting production, De Beers is still sitting on around $2bn in inventory. Revenue slumped 44 per cent in the first quarter of this year, compared with the same period in 2024. The planned split with De Beers is part of a restructuring plan that Anglo developed to fend off a hostile £39bn takeover attempt by BHP last year. As part of that effort, Anglo has sold its nickel unit, and recently spun out its $11bn platinum business, Valterra, which made a debut secondary listing in London this week. It has also struck a deal to sell its Australian coal mines to Peabody, although the two sides are locked in dispute after an unexpected closure at one of the mines following an explosion in March. Anglo has engaged bankers who are pursuing a “dual track” approach to the De Beers disposal, running a sale process while also preparing for a potential initial public offering if an attractive offer fails to emerge. But the field of potential buyers is thin, according to bankers, owing to the poor conditions in the diamond industry. Two separate potential bids are being put together by Bruce Cleaver, who was CEO of De Beers until 2023 and by Gareth Penny, who ran the company between 2005 and 2010, according to people familiar with their plans. Neither has yet secured financing. Cleaver, Penny and Anglo declined to comment. Their interest was first reported by Bloomberg. De Beers is 15 per cent owned by the government of Botswana, which has said it wants to increase its stake in the company, and will play a critical role in the company’s future. The government and Anglo finalised a 30-year license agreement earlier this year. “The feeling in the market is that the Botswanan government really is in control of this process,” said Rob Wake-Walker, a consultant at WWW International Diamond Consultants. “It feels inconceivable that they’d not take a larger stake in such an important business.” Anglo American has said that the De Beers separation process could stretch into next year, depending on market conditions, which could make it the final piece of Anglo’s restructuring to be complete.