De Beers' Fate Uncertain as BHP Considers Anglo American Takeover

According to Reuters, Australian mining giant BHP is contemplating a potential takeover of London-listed Anglo American, parent company of De Beers, news that is confirmed by Anglo American in a statement saying the bid is being reviewed. BHP told the Financial Times it has proposed a US$38.6bn takeover, mentioning the deal's focus is on acquiring Anglo's world class copper assets in South America. The news causes nervosity on the fate of De Beers, the diamond arm of Anglo American, valued at US$7.6bn, which Forbes believes will likely be sold if it comes to an effective takeover. At the end of February, Anglo American had already announced it was reviewing its assets, when the company announced a US$1.6bn impairment charge on its diamond business, which in turn, said it would reduce overheads by US$100m via job cuts and sale of non-core parts to improve cashflow. Following the news of a potential takeover, an internal De Beers memo urges staff to remain "focused on our jobs... We have a strong Origins strategy and an important plan for 2024 which we need to deliver".