Richemont is in talks to acquire De Beers

Richemont, the owner of Cartier and Van Cleef & Arpels, may join the investment group seeking to acquire diamond producer De Beers. The company's value is being considered at approximately $1 billion.

Anglo American is selling an 85% stake in De Beers. The remaining 15% belongs to the government of Botswana, which holds a right of first refusal on acquiring an additional stake. Richemont is holding negotiations on this matter with the Global Diamond Consortium. The group is led by former De Beers CEO Gareth Penny, with American jewelry company Signet and Belgian company Pluczenik also participating in the process.

De Beers is already one of Richemont's key partners. If the acquisition goes through, the Swiss company would gain greater control over the process from diamond mining to the final product.

De Beers has faced difficulties in recent years. The popularity of lab-grown diamonds has reduced demand for natural stones. Last year, the company generated $3.5 billion in revenue, though its operating loss amounted to $787 million.

Source: Investing.com