Botswana Won't Increase Stake in De Beers, Anglo to Get 85% Hold by September (Updated)

The Oppenheimer family agreed to a $5.1 billion offer from Anglo American to buy its 40 percent stake in De Beers. Botswana, which holds a 15 percent stake in the company, had an option to increase its stake to 25 percent.

Cynthia Carroll, Chief Executive of Anglo American, said the close alignment of interests between Anglo and Botswana builds upon the ten-year sales agreement between De Beers and Botswana.

"The diamond industry is a major contributor to our economy," said Dr. Ponatshego H Kedikilwe, Minister of Minerals, Energy and Water Resources. "We look forward to building on the excellent relationship we have with Anglo American, both through our ownership of De Beers and through the Debswana joint venture, and to sharing in De Beers’ highly attractive long term prospects."

The transaction received all necessary legal approvals.

Anglo American expects the transaction to complete during September 2012, unless an earlier date can be agreed. Last week Nicky Oppenheimer said the transaction would conclude in a few weeks.