Swiss-based luxury conglomerate Richemont and American jewelry chain Signet Jewelers are reportedly exploring participation in the consortium leading the bid for De Beers, five industry sources confirmed.
The backing of natural stones by the owner of Cartier, a luxury brand, and Signet, a major jewelry retailer, is considered a significant boost for the industry as it recovers from one of its most severe crises to date.
Two companies are engaged in private discussions with the Global Diamond Consortium, led by former De Beers CEO Gareth Penny, about potentially joining the group, according to sources who wish to remain anonymous due to the confidential nature of the talks.
Although discussions are at an advanced stage, there is no certainty that the companies will join, as indicated by some sources. If an agreement is reached, Richemont and Signet are expected to hold relatively small stakes, as the three Southern African states will possess substantial shares in the company.
Richemont is one of the world’s leading luxury goods groups, controlled by South African billionaire Johann Rupert. Its brands include Vacheron Constantin, Cartier and Van Cleef & Arpels, with its jewelry division accounting for about three-quarters of its business.
Signet, a leading jewelry retailer, owns well-known brands like Zales, Jared, and Kay. The diamond industry has been actively seeking increased support from luxury retailers to promote natural stones, especially following a decline in Chinese luxury spending and the growing popularity of synthetic alternatives.
In July, the consortium was identified as the preferred buyer for De Beers from miner Anglo American and is currently negotiating with the Botswana government, an existing stakeholder in De Beers, to potentially increase its ownership to around 25%.
Since rejecting a nearly $50 billion offer from BHP Group in early 2024, Anglo American has been attempting to sell the former diamond monopoly. However, the process has been hindered by a diamond market crisis, resulting in three impairments on the business in three years, reducing its carrying value to $2.3 billion in February.