DE BEERS is studying an entry into US diamond polishing and retail after settling lawsuits that barred it for about 60 years from the top market for the gems.
“That’s clearly one of the avenues we’d like to pursue, to grow the business at De Beers in a much bigger way in the US,” chief executive Philippe Mellier said in an interview near Botswana capital Gaborone.
“Its going to be more midstream-downstream,” meaning polishing and retail.
A $295 million (€240 million) agreement by De Beers, the largest diamond supplier by sales, to settle antitrust suits in the US became unconditional in May, allowing it to operate in the country. The US makes up about 45 per cent of world diamond jewellery sales.
Mr Mellier didn’t rule out establishing cutting and polishing facilities in the US, saying: “Not now but never say never.”
Anglo American is buying the Oppenheimer family’s 40 per cent of De Beers for $5.1 billion, increasing the company’s holding to 85 per cent. Botswana owns the rest of the business. The deal should be effective “within days”, Mr Mellier said. – (Bloomberg)
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