Richemont, Signet in Talks to Join De Beers Bid

Swiss luxury group Richemont and U.S. retailer Signet Jewelers are in advanced talks to join the Global Diamond Consortium bid for De Beers from Anglo American. De Beers is valued at about $1 billion. The consortium, led by former De Beers CEO Gareth Penny and including Namibia, Angola and major diamond manufacturers, became preferred bidder in July. Anglo put De Beers up for sale in May 2024 after fending off an almost $50 billion BHP approach earlier that year and taking three impairments that cut the unit's carrying value to $2.3 billion as of February. Botswana holds a 15% stake, produces about 70% of De Beers' diamonds, and is discussing raising its ownership to about 25%. A presidency spokesperson said the government would not comment until a deal is signed. Richemont and Signet stakes are undisclosed and participation is not certain. Richemont's jewellery brands, including Cartier and Van Cleef & Arpels, make up about three-quarters of its business; Signet owns Zales, Jared and Kay. Analyst Paul Zimnisky called De Beers "a deep value investment right now" that "with enough capital and proper execution it could flourish again." RBC analysts said Richemont's possible role would be strategically meaningful for natural-diamond positioning rather than a financial event.