Anglo American in talks to sell De Beers for about $1bn

A consortium led by former De Beers chief executive Gareth Penny was reported as preferred bidder for Anglo’s 85% stake, with about $750m upfront, $250m later and performance-linked payments. Botswana holds a right of first refusal, and Anglo has cut the unit’s carrying value to $2.3bn.

Why it matters. Large acquisitions and mergers are usually followed by disposals of non-core assets, often below book value.

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In the course

Module 9: The M&A process