Anglo American announces that the resolution to approve its proposed acquisition of an incremental interest in De Beers, to take its holding from 45 per cent to up to 85 per cent, was passed by the requisite majority at a General Meeting of the Company.
Sir John Parker, Chairman of Anglo American, commented: “The Board of Anglo American is delighted that our shareholders have shown overwhelming support for the De Beers transaction. Consolidating control of De Beers, the world’s leading diamond company, reinforces Anglo American’s commitment to the diamond industry and to pursuing growth in those resource businesses where we have the opportunity to expand and capitalize on a favorable long term demand outlook.”
“The transaction is expected to be accretive to underlying earnings for Anglo American in the year of acquisition, before depreciation of fair value adjustments, and we are confident that we will be able to enhance value for our shareholders, over time, through the benefits derived from our scale and expertise, combined with the leadership of De Beers’ business and its iconic brand.”
Cynthia Carroll, Chief Executive of Anglo American, commented: “For more than a century, De Beers has captured the imagination of the market and consumers and remains one of the most renowned names in luxury goods and this is testament to its strong leadership. Our priority is to build on the outstanding work of the Oppenheimer family and De Beers’ management to seize the opportunities of the evolving diamond market.”
“Diamonds have long been a core part of Anglo American’s strategy; we believe in the strong fundamentals of the diamond market, driven by demand across emerging and developed economies. Consolidating control of De Beers provides us Anglo American with a unique opportunity to further differentiate our portfolio and strengthen our exposure to late development cycle demand. We are truly excited to be leading De Beers through the next development phase in its rich history.”