Botswana reportedly nears deal for 25% De Beers stake as Anglo American sale advances
Botswana and a consortium seeking to acquire De Beers are close to agreeing an ownership structure that would raise the government's stake in the diamond producer from 15% to approximately 25%, Bloomberg reported, citing people familiar with the talks. Anglo American owns 85% of De Beers and Botswana the remaining 15%; under the proposed sale part of Anglo's holding would pass to Botswana, with Angola, Namibia and private consortium investors acquiring other interests, and the three governments collectively holding less than 50%. Moody's Ratings downgraded Botswana to Baa2 from Baa1 on September 25 and said it could lower the rating again if the government materially increased its investment in De Beers through debt-financed transactions.
Why it matters: The negotiations bear on the briefing's commodities theme, because the distribution of De Beers' diamond output and the fiscal capacity of the states hosting it are being settled in the same transaction.