Because of the continued low demand for natural diamonds, Anglo American may decide to float De Beers rather than sell it. According to the UK’s Mail on Sunday newspaper, a representative for De Beers said the company was working on a prospective listing and sale of the business, and “both options are very much on the table”.
According to Raj Ray, an analyst at BMO Capital Markets, public markets have been hard for diamond firms, and the near- to medium-term outlook remains negative. Duncan Wanblad, Anglo’s CEO, has previously stated that the company would contemplate a trade sale, demerger, or an initial public offering (IPO) to enhance shareholder value.
Following a hostile and unsuccessful acquisition effort by Australian mining giant BHP, it declared in May that it would shift its focus to copper and other more valuable commodities.