iStockAnglo American Plc is about to begin a formal sales process for De Beers, after receiving indications of interest from potential buyers that include two former chief executives of the iconic diamond miner.
An exit from De Beers represents the final step in a sweeping restructuring plan outlined by Anglo CEO Duncan Wanblad last year as the company fended off a takeover approach from BHP Group. Anglo has already agreed to sell its coal and nickel mines and unbundled its platinum business this week.
Former De Beers bosses Gareth Penny and Bruce Cleaver are both leading groups that are potential buyers, as is Australian mining veteran Michael O'Keeffe, according to people familiar with the matter. Anglo is working with advisers who are preparing to start the process, said the people, who asked not to be identified discussing private information.
Anglo American declined to comment, as did Penny and Cleaver. O'Keeffe could not be reached for comment.
Anglo has waited to sell De Beers as the diamond industry grappled with its deepest crisis in decades, after a collapse in Chinese demand and fierce competition from synthetic stones. Anglo wrote down the value of the unit for a second time in February, to about $4.9 billion.
Anglo shares rose as much as 4% and traded at 2,314 pence by 2:14 pm in London.
But while prices for rough diamonds have slumped, Anglo's executives still see De Beers as a trophy asset - the company has said it will be patient in finding a buyer and doesn't want to destroy value by moving too quickly.
Anglo is also examining options for an initial public offering or demerger of De Beers. However, a sale is the preferred and most likely option, the people said.
An exit from De Beers represents the final step in a sweeping restructuring plan outlined by Anglo CEO Duncan Wanblad last year as the company fended off a takeover approach from BHP Group. Anglo has already agreed to sell its coal and nickel mines and unbundled its platinum business this week.
Former De Beers bosses Gareth Penny and Bruce Cleaver are both leading groups that are potential buyers, as is Australian mining veteran Michael O'Keeffe, according to people familiar with the matter. Anglo is working with advisers who are preparing to start the process, said the people, who asked not to be identified discussing private information.
Anglo American declined to comment, as did Penny and Cleaver. O'Keeffe could not be reached for comment.
Anglo has waited to sell De Beers as the diamond industry grappled with its deepest crisis in decades, after a collapse in Chinese demand and fierce competition from synthetic stones. Anglo wrote down the value of the unit for a second time in February, to about $4.9 billion.
Anglo shares rose as much as 4% and traded at 2,314 pence by 2:14 pm in London.
But while prices for rough diamonds have slumped, Anglo's executives still see De Beers as a trophy asset - the company has said it will be patient in finding a buyer and doesn't want to destroy value by moving too quickly.
Anglo is also examining options for an initial public offering or demerger of De Beers. However, a sale is the preferred and most likely option, the people said.
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