Anglo to buy Oppenheimer's De Beers stake
Johannesburg - Global miner Anglo American [JSE:AGL] has
agreed to buy the Oppenheimer family’s stake in diamond miner De Beers for
$5.1bn in cash, taking its ownership of the diamond miner to up to 85%, it said
Anglo has long been speculated to be considering a deal to
increase its stake in unlisted De Beers, which vies with Russia’s Alrosa for
the title of the world’s largest diamond producer, from the current 45%, but
Friday’s announcement was unexpected.
“Today’s announcement marks our commitment to an industry
with highly attractive long term supply and demand fundamentals,” Anglo
American CEO Cynthia Carroll said.
“Underpinned by the security of supply offered by a new
10-year sales agreement with our partner, the Government of the Republic of
Botswana, this forms a compelling proposition.”
Anglo American said it had reached a deal with the CHL
Group, which represents the Oppenheimer family interest, but added Botswana had
a pre-emption right over the CHL stake, potentially lifting the government’s
ownership to up to 25%.
Anglo said that if Botswana exercised its rights in full, it
would raise its own interest in De Beers to 75%.
De Beers, founded by Cecil Rhodes in the 19th century,
controls about 40% of the world’s rough diamond supply.
Anglo American shares were up 2.3% at R302.52 on Friday
morning on the JSE Top 40 - (Tradeable) [JSE:J200].
can someone please inform me ----will anglo be paying the oppenhimers the 5 billion dollars in london---is this the oppenhimers getting out of sa as well as getting their money out
I am certain the Oppenheimer's have more than their fair share of their wealth out of the country so this is not a big deal...
I don't blame them for getting out of mining and get their money out of SA. I would do it too since ANCYL wants to rob them of everything.