Cartier-owner Richemont in talks to join bid for diamond giant De Beers, source says

Cartier-owner Richemont is in talks ​to join a consortium bidding for De Beers, the ‌diamond ​miner being sold by Anglo American and valued at about $1 billion, a person familiar with the matter said. A deal would give the Swiss luxury goods group greater influence over a key part of its supply chain ‌as the diamond industry emerges from a prolonged downturn.

Richemont, which also owns jeweller Van Cleef & Arpels, is discussing joining the Global Diamond Consortium, a group led by former De Beers Chief Executive Gareth Penny, the person told Reuters. Bloomberg News earlier reported the talks, citing people familiar with the matter.

Richemont, worth around $113 billion and ‌cash-rich, was not immediately available for comment. Anglo American declined to comment. "We view Richemont's potential participation as strategically meaningful but more about optics and long-term natural ‌diamond category positioning than a financial event," RBC analysts said in a note.

Any bid for De Beers, which has been hit by the rise of lab-grown diamonds, would also depend on Botswana's government, which has a first right of refusal, but has yet to say whether it intends to exercise that option. A spokesperson for Botswana's presidency said on Tuesday the government would ⁠not comment ​until a transaction had been concluded and ⁠signed. Officials said this summer a deal was likely to be completed in the fourth quarter of 2026.

LONG SEARCH FOR A BUYER Anglo put De Beers up for sale in ⁠May 2024 as part of a broader restructuring, after falling diamond prices and growing demand for synthetic stones hit the industry.

De Beers has mining and exploration operations in ​Botswana, Namibia, Angola, South Africa and Canada. Its business has suffered in light of the emergence of lab-grown diamonds, which are much cheaper than ⁠natural diamonds but have enjoyed global success.

Richemont Chairman and controlling shareholder Johann Rupert, who is South African, has in public comments affirmed his commitment to natural diamonds in high-end jewellery for his brands. Richemont would ⁠not ​be the first high-end jewellery company to directly invest in the mines that produce its diamonds. British diamond brand Graff, for example, holds a 14.9% stake in Gem Diamonds which owns the Letseng mine in Lesotho.

Richemont shares have held up this year and greatly outperformed the struggling luxury sector, ⁠supported by the relative strength of jewellery, which consumers see as a store of value. The luxury conglomerate had around €9 billion in net cash at the ⁠end of June, according to filings. The ⁠Bloomberg report said negotiations were advanced, though there was no guarantee Richemont would join the consortium.

US jewellery retailer Signet could also join the bid, Bloomberg said. Signet did not immediately reply to a request for comment.