Botswana Vows to Protect Stake in De Beers Amid Potential BHP Takeover of Anglo American

Botswana President Mokgweetsi Masisi has pledged to safeguard the country's interests, including its 15% stake in diamond giant De Beers, amid a potential acquisition of Anglo American Plc by BHP group Ltd. Anglo American, which owns the remaining 85% of De Beers, rejected a $39 billion proposal from BHP Group.

Why this matters: The potential acquisition of Anglo American Plc by BHP Group Ltd. could have significant implications for the global mining industry, particularly in terms of copper production and supply. The outcome of this deal could also impact the economies of countries involved, such as Botswana and South Africa, and influence the future of key industries like electric vehicles.

In a television interview with CNBC Africa in Dallas, Texas, President Masisi stated, "No way would we allow ourselves to willingly be made redundant or irrelevant. So Botswana will respond in ways that are protective of its interests." Botswana's 15% stake in De Beers is a significant national interest for the country.

BHP Group's proposed deal would put De Beers under strategic review. Anglo American has already been urged, strategy, amid, sector, moves to outperform BHP's offer, potentially at the upcoming Bank of America Corp.'s annual conference in Miami.

BHP Group is expected to make a new offer before May 22, which may need to be revised to address the concerns of Anglo American's investors and the South African government. The South African government, which holds 8.4% of Anglo American's capital, has expressed concerns about the potential acquisition's impact on the country's economy and jobs.

David Masondo, South African Vice Minister of Finance and President of the Public Investment Corporation, stated, "We haven't fully evaluated the initial proposal, but we would look favorably at a higher offer." les, projet, de, de Rio Tinto and Glencore are also considering making offers for Anglo American Plc.

The potential acquisition would create a global leader in copper production, with copper prices expected to surge due to supply concerns and increasing demand from electric vehicles. Anglo American faces decisions on several fronts, including the future of De Beers and the Woodsmith fertilizer project in northern England, which currently absorbs about $1 billion annually.

As the potential acquisition of Anglo American Plc by BHP Group Ltd. unfolds, Botswana remains steadfast in its commitment to protect its 15% stake in De Beers. The outcome of this proposed deal could have significant implications for the global mining industry and the economies of the countries involved, particularly Botswana and South Africa.