Cartier Owner May Join the Acquisition of Diamond Miner De Beers — Bloomberg

The Swiss conglomerate Richemont, which owns the Cartier brand, and the American jewelry retailer Signet Jewelers are in talks about joining a consortium that has a strong chance of acquiring the diamond mining company De Beers. Bloomberg reported this, citing five sources familiar with the situation.

Richemont and Signet are discussing the possibility of joining the Global Diamond Consortium (GDC)—an organization led by former De Beers CEO Gareth Penny, sources told the agency. This consortium was among the top contenders to acquire diamond miner De Beers from mining group Anglo American back in July. According to some Bloomberg sources, although negotiations regarding Richemont and Signet’s participation in the consortium are at an “advanced stage,” there is still no guarantee that they will join the organization.

The GDC already includes government agencies from Namibia and Angola—the two largest diamond producers—as well as leading companies in the industry. The government of Botswana owns another 15% of De Beers.

It remains unclear exactly which stakes in Richemont and Signet the parties might be entitled to if a deal to acquire De Beers is concluded. However, given that three South African governments will hold significant stakes in the company and other private investors are already part of the consortium, Richemont and Signet’s stakes, if the deal goes through, will most likely be relatively small, Bloomberg suggests.

GDC and Signet declined to comment to the news agency. Richemont did not respond to its inquiries.

Richemont shares rose 0.2% during trading on October 15 in Switzerland, while Signet Jewelers shares were virtually unchanged in U.S. premarket trading. Year-to-date, the two companies have gained 1.3% and 30.3%, respectively.

For many years, the diamond industry has been seeking greater support from luxury retailers in promoting natural gemstones, according to Bloomberg. After a surge in sales during the pandemic, the market began to weaken and then faced a sharp decline in luxury spending in China, leading to a collapse in prices. The growing popularity of synthetic gemstones, trade tensions, and sudden geopolitical shifts dealt an additional blow.

The industry will view the support from Cartier’s owner and major jewelry retailer Signet as a positive sign for natural diamonds, the agency notes. This is especially true now, as the sector is slowly emerging from one of the worst crises in its history.

Richemont is one of the world’s leading luxury goods manufacturers and is controlled by South African billionaire Johann Rupert. The group’s portfolio includes brands such as Vacheron Constantin, Cartier, and Van Cleef & Arpels, with its jewelry division accounting for about three-quarters of its business. Signet is one of the largest jewelry retailers, owning the Zales, Jared, and Kay chains.

This article was AI-translated and verified by a human editor