Anglo American is reportedly considering an IPO for De Beers on the London Stock Exchange — but don’t let the word “IPO” fool you. This isn’t a comeback story… it’s starting to look like a fire sale. 🔥
📊 From Billion-Dollar Giant to Struggling Relic
De Beers’ financial freefall is shocking:
- EBITDA dropped from $1.4B to just $72M in 2023 😱
- Revenues collapsed from $6B to $3.6B
- Anglo wrote down De Beers' value by $1.6B in early 2024
- It now values De Beers at just $7.6B — down from $12.75B in 2011
And remember: Anglo paid $5.1B for just 40% of De Beers in 2011. Today, that entire 85% stake might not be worth much more.
🚪 Is This an Exit or a Rescue Plan?
This IPO isn’t really to raise money for De Beers. Instead:
- 💸 All proceeds go to Anglo’s balance sheet
- ❌ De Beers gets nothing for reinvestment
- 🧨 New shareholders inherit all the risks and baggage
- 🤔 Botswana’s 15% stake likely remains untouched, but their influence is seen as a turnoff for investors
Anglo may simply want to dump De Beers before a larger M&A move. 🧾
📉 Why IPOs Rarely Work in Diamonds
History says it all:
- Petra Diamonds 💀 lost 99% of its value since listing
- Gem Diamonds 🪙 down over 90%
- Alrosa’s IPO in 2013? Raised $1.3B, but its shares are now worth less than their starting price
De Beers itself delisted in 2001 — and this return might be more of a warning than a celebration. ⚠️
👑 So… Who Would Buy De Beers?
The ideal buyer isn’t just wealthy. They need a mission:
- 🔄 Rebrand natural diamonds for new generations
- ⚔️ Beat lab-grown diamonds in marketing, not mining
- 🩸 Tackle issues like sanctioned Russian gems & “conflict” stones
- 🧠 Create a powerful, emotional narrative — the one thing LGD can’t copy
That buyer likely isn’t a Gulf luxury fund. It could be someone with bold vision — maybe even a wildcard with geopolitical influence. Think less Cartier, more Kremlin? 🤯
⏳ The diamond clock is ticking. Without a marketing revolution and radical repositioning, De Beers could become a relic instead of a revival story.
Do you think De Beers can shine again, or is this its final cut? 💎💔