De Beers CEO Al Cook has indicated that the diamond giant’s future ownership structure could evolve, signaling a potential shift in the company’s long-term corporate model
BONGANI MALUNGA
Botswana’s long-standing ambition to deepen its influence over global diamond giant De Beers may have received its strongest endorsement yet after Chief Executive Officer Al Cook signaled that the company’s future ownership structure could take the form of a partnership involving diamond-producing governments and strategic investors.
Speaking at the Reuters NEXT Europe Economic Summit in London last week, Cook revealed that the prolonged process to sell De Beers is now entering its final stretch, stating that a transaction is expected to conclude “within weeks rather than months.”
His comments have intensified attention in Botswana, where the government has openly expressed interest in increasing the country’s stake in the company beyond its current 15 percent shareholding.
WEEKS RATHER THAN MONTHS
“I am hopeful that the sale of De Beers will happen in weeks rather than months going forward. It’s been a two-year period, there have been a lot of negotiations, and we have never been closer than we are to a sale,” Cook said in an interview with international media outlet Observer Money.
Botswana has been assembling a consortium aimed at strengthening its position in any ownership transition. Reports indicate that the consortium includes support from the Oman Investment Authority and engagement with the United Arab Emirates, alongside participation from fellow diamond-producing nations Angola and Namibia.
According to another report from Bloomberg, the Botswana-backed consortium is among the three most advanced bidders currently under consideration. Competing interests reportedly include a rival group led by former De Beers chief Gareth Penny and another bid fronted by Israeli businessman Nir Livnat.
HYBRID OWNERSHIP
However, Cook’s latest comments suggest that the eventual outcome may not produce a traditional private acquisition. Instead, the De Beers CEO pointed toward a hybrid ownership structure that combines sovereign interests with private capital and industry expertise.
“The good thing about us is that we have had countries that understand diamonds, Namibia, Botswana and Angola, want to take equity stakes in De Beers. We have consortiums and companies that know a lot about diamonds,” Cook said.
DE BEERS’ NEXT CHAPTER
Cook then appeared to articulate what many observers believe could become the preferred structure for De Beers’ next chapter. “We have all the ingredients for a powerful public-private partnership. But as with all deals, we need to get over the line,” he stated.
A PPP-style ownership arrangement would represent a significant departure from De Beers’ traditional corporate structure and could give Botswana a rare opportunity to convert its status as the world’s leading diamond producer by value into greater strategic influence over the global diamond value chain.