'Cut' Diamond Firm Group Offers Only $1B for De Beers

By the Editorial Team · Thursday, July 30, 2026

A consortium led by former De Beers CEO Gareth Penny has made a $1 billion offer to acquire the majority stake from Anglo American, reflecting a drastic fall in the company's valuation from its previous $18 billion peak. This potential takeover underscores the enduring challenges in the diamond industry, including declining demand for natural stones, rising popularity of synthetic diamonds, and broader economic pressures that are reshaping the market.

De Beers, the British multinational historically dominant in the diamond industry, is reportedly facing a takeover offer of around $1 billion from a consortium led by former CEO Gareth Penny. The proposed acquisition marks a steep decline from the company’s previous peak valuation near $18 billion and reflects ongoing challenges in the global diamond market.

The Global Diamond Consortium is in talks to purchase the majority stake currently held by Anglo American, the mining company that owns De Beers. Sources indicate the consortium plans to pay $750 million upfront, with the remaining amount to be paid later. Both Anglo American and the consortium declined to comment on the negotiations.

De Beers’ valuation had already dropped to approximately $2.3 billion as of early 2026, a significant reduction attributed to multiple factors impacting the diamond sector. After a surge in sales during the COVID-19 pandemic, demand has sharply declined, particularly in China, a crucial market for natural diamonds. The rise of synthetic diamonds has also affected consumer preferences; according to The Knot, nearly half of engagement rings in 2023 featured lab-grown stones, which has contributed to diminished demand for natural diamonds worldwide.

The diamond industry has also been affected by broader economic and geopolitical issues. Trade tensions and international uncertainties have compounded the challenges faced by diamond producers and retailers.

Industry analysts suggest that the current low valuation of De Beers reflects a long-term reevaluation of the diamond market rather than a temporary downturn. Joshua Freedman, a senior analyst with the Rapaport Group, which specializes in diamond market analysis, said the offer “reflects the state of the diamond industry and the belief that the current challenges are long-term and not cyclical.” He also noted that the consortium’s bid hinges on securing external financing, meaning the deal’s success depends on outside investors perceiving sufficient value in De Beers.

Founded in 1888 by Cecil Rhodes, De Beers has been closely associated with the diamond trade for more than a century. However, the company has struggled in recent years to maintain its historic dominance amid shifts in consumer behavior and market conditions. The potential sale represents a significant moment for the company and the industry as a whole, signaling possible changes in ownership and strategic direction amid a transforming marketplace.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.