Luxury giant Richemont and US retailer Signet Jewelers Ltd. are in talks to join a consortium poised to buy diamond miner De Beers, according to five people familiar with the matter. The potential involvement of Cartier’s parent and a major jewelry retailer is viewed as a boost for natural stones amid industry recovery from a severe downturn. The sector has struggled with weak Chinese demand and rising lab-grown gem competition.
The two companies are negotiating with Global Diamond Consortium (GDC), led by former De Beers CEO Gareth Penny, about joining the group. While talks are advanced, participation is not guaranteed. GDC declined to comment, and Richemont did not respond to requests. The consortium emerged in July as the preferred bidder to acquire De Beers from Anglo American Plc and is negotiating with Botswana’s government to increase its stake to around 25%.
GDC already includes Namibia and Angola, two top diamond producers, along with major diamond manufacturers. Richemont and Signet’s potential stake size is unclear, but given existing commitments from Southern African states and private investors, their holdings would likely be minor. Richemont, controlled by Johann Rupert, owns Cartier and Van Cleef & Arpels, with jewelry making up three-quarters of its business. Signet owns Zales, Jared and Kay.
The diamond industry has long sought luxury retailer support to promote natural stones. After pandemic-era sales strength, the sector weakened due to collapsing Chinese luxury spending, synthetic stone popularity, trade tensions, and geopolitical shifts. Anglo American has pursued a De Beers sale since rebuffing a nearly $50 billion BHP offer in early 2024, but the process has been hindered by market turmoil, resulting in three impairments and a reduced carrying value of $2.3 billion.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing