De Beers Suitor Targets Renewed Demand for Natural Diamonds Amid Synthetic Competition

The consortium seeking to acquire De Beers plans to revive consumer demand for natural diamonds through innovative marketing strategies, as the industry battles falling prices and growing competition from lab-grown stones.

The Global Diamond Consortium (GDC), led by former De Beers chief executive Gareth Penny, is in the final stages of negotiating the acquisition of the diamond producer after emerging ahead of rival bidders. The consortium has also secured the backing of Botswana, which hosts De Beers’ largest mining operations.

The proposed acquisition comes as the global diamond industry attempts to recover from one of its deepest downturns, driven by weaker Chinese luxury spending and the rapid expansion of the synthetic diamond market.

Lab-grown diamonds, which are chemically identical to natural diamonds, have gained market share as cheaper production in China and India has pushed prices down. Their affordability has increased competition in the jewellery market, particularly among consumers facing financial pressure.

A GDC representative said the industry’s biggest challenges centred on restoring consumer demand and addressing competition from synthetic stones.

The consortium intends to focus on marketing initiatives to strengthen the appeal of natural diamonds and attract new buyers.

“This is about effective marketing because this is a demand side problem,” the representative said, adding that GDC was developing new strategies to stimulate demand.

The natural diamond industry has struggled to establish coordinated marketing campaigns since De Beers’ historical diamond marketing dominance weakened following the collapse of its monopoly at the beginning of the century. Previous industry-wide promotional efforts have delivered limited results, while De Beers’ own attempt to enter the lab-grown diamond market was subsequently discontinued.

The GDC consortium brings together several major diamond-producing countries and industry participants. Botswana plans to double its stake in De Beers to 30%, while Namibia and Angola are also expected to invest. Oman and several key diamond customers are part of the group.

Luxury group Richemont and jewellery retailer Signet Jewelers are also reportedly in discussions to join the consortium.

The GDC representative said the acquisition offered an opportunity for industry participants to collaborate and strengthen the position of natural diamonds in the global market.

Anglo American has been seeking to divest De Beers since rejecting an almost $50 billion acquisition approach from BHP Group in early 2024. However, the prolonged diamond market downturn has complicated the sale process.

Anglo American has recorded three impairments against De Beers in three years, reducing the business’s carrying value to $2.3 billion in February 2026.

Bloomberg previously reported that Anglo American was discussing a potential valuation of approximately $1 billion, with additional payments linked to De Beers’ future financial performance.

The GDC representative confirmed that negotiations with Anglo American were ongoing, with the consortium seeking to finalise the transaction as quickly as possible.

The proposed acquisition could mark a significant shift in the ownership of one of the world’s most influential diamond companies, while placing renewed emphasis on collaboration between producing countries and industry stakeholders to rebuild demand for natural diamonds.