Richemont and Signet In Talks to Join Bidder for De Beers
Luxury conglomerate Richemont and US-based Signet Jewelers Ltd. are in discussions to join a consortium positioned to acquire diamond miner De Beers, according to five people familiar with the negotiations.
The potential participation of Richemont, owner of luxury brand Cartier, and Signet, the world's largest retailer of diamond jewelry with approximately 2,600 stores operating under brands including Kay Jewelers, Zales, and Jared, signals renewed industry confidence in natural stones. The diamond sector has been navigating one of its most severe downturns, pressured by weakening Chinese demand and intensifying competition from laboratory-grown alternatives.
The Consortium and the Sale Process
The consortium these companies are considering joining is the Global Diamond Consortium, led by former De Beers CEO Gareth Penny. The group emerged as the preferred bidder in July 2026, according to Botswana government officials.
Anglo American, which owns 85% of De Beers with Botswana's government holding the remaining 15%, first announced plans to divest or demerge the diamond miner on May 14, 2024. The decision came as part of a broader restructuring strategy following a takeover approach from BHP Group. Anglo American acquired its controlling stake after purchasing the Oppenheimer family's 40% holding in 2011 for approximately $5.1 billion, ending nearly 80 years of Oppenheimer family control over the diamond giant.
De Beers' Financial Challenges
De Beers has faced significant financial headwinds. The company recorded an underlying EBITDA loss of $113 million in the first half of 2026, though this represented a 40% improvement from the $189 million loss in the same period of 2025. First-half revenue declined 19% to $1.6 billion.
The downturn has been driven by sharp price declines and weakening demand. The average rough diamond price fell 32% in the first half of 2026, dropping from $155 per carat to $105 per carat, according to De Beers' consolidated figures. China's diamond market, a crucial growth driver in previous years, plummeted 18% in 2022 compared to the prior year, marking the steepest decline since the Shanghai Diamond Exchange was established in 2000.
Botswana's Critical Role
Botswana's role in the transaction remains critical. The southern African nation hosts De Beers' most important mining operations, accounting for approximately 69% of the company's rough diamond production in the first half of 2026. This makes Botswana's agreement essential for completing any ownership change.
Deal Structure and Strategic Implications
According to people familiar with the discussions, Anglo American has discussed selling its 85% stake for approximately $1 billion, structured as roughly $750 million upfront and $250 million deferred, plus performance-linked payments. The consortium is also expected to inject about $500 million into De Beers to strengthen the company's financial position.
Richemont, controlled by South African billionaire Johann Rupert through Compagnie Financiere Rupert, which holds 10% of equity but controls 51% of voting rights, brings significant luxury market expertise to the potential deal. The company's participation alongside Signet would unite a major luxury goods producer with the world's leading diamond jewelry retailer, creating a vertically integrated stake in the natural diamond supply chain.
The involvement of established jewelry market players could provide stability to an industry seeking to differentiate natural diamonds from their laboratory-grown competitors and rebuild consumer confidence after years of market turbulence.
