Anglo American Corporation Aims to acquire a further 40% of De Beers
Cynthia Carroll, CEO of Anglo American Corporation has announced that the material mining giant wants to acquired the 40% of shares in De Beers owned by the Oppenheimer family. The deal, if approved by shareholders, will be worth around $5.1 bn and raise the corporation’s ownership to 75%.
Anglo American’s interest growing in the De Beers is what it sees as a good long term supply and demand balance. Rough diamond prices are set to increase and demand prospects are good. De Beers recently secured a ten year deal with the Botswana government on mining rights. Under the agreement, the Botwana government has the opportunity to raise its De Beers’ shareholding from 15 to 25% if it chooses.
While the Oppenheimer family are still involved at board levels, the name that has been so associated with the building of the De Beers brand will no longer have any shareholding interest when the deal completes. If approved, the deal should be complete by the second half of 2012.
De Beers also owns Element Six , the independently managed synthetic diamond supermaterials group. Element Six is a global leader in the design, development and production of synthetic diamond supermaterials and is a major supplier of diamond and CBN materials.
After Element Six’s major reorganisation, redundancies in 2009, the company seems to have refocused its business activities. In June, the company opened a new office, located in the Chong Hing Finance Centre to concentrate on business development with a strong customer service and technical support team. The Shanghai team builds upon the company’s regional presence, with approximately 320 Element Six employees based in mainland China, (encompassing manufacturing sites in Suzhou and Wuxi), as well as sales teams in Hong Kong and Taiwan.Then in October, its Ventures Group opened a new representative office in California’s Silicon Valley. The company is interested in building new technology investment opportunities based on diamond’s remarkable electronic properties. Since 2008, several investments have been made in various companies and applications. How the De Beers change in shareholding will affect Element Six is yet to been seen.