Anglo American gets final approval on De Beers deal

Mining giant Anglo American has received final regulatory approval for the acquisition of the Oppenheimer family's 40 per cent stake in diamond producer De Beers.

Anglo American has received consent from the South African Minister of Mineral Resources to make the acquisition, meaning that all the conditions to the transaction have been satisfied.

The $5.1bn deal, which was officially announced back in November, puts an end to the Oppenheimer family's involvement in the business after 80 years.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

The government of the Republic of Botswana (GRB) has a pre-emption right in respect of the De Beers interests to be sold by CHL, and its affiliates, enabling it to participate in the transaction and increase its interest in De Beers, on a pro rata basis, to up to 25%.

In the event that the GRB exercises its pre-emption rights in full, Anglo American will acquire an incremental 30% interest in De Beers, taking its total interest to 75%, and the consideration payable by Anglo American will be reduced proportionately.

Anglo American's share price fell 0.12% to 2,160.50p by 09:47.

NR