In February 1908, Joseph Asscher, a master cutter of diamonds, successfully cleaved the Cullinan, the largest diamond ever found, at his workshop in Amsterdam. The diamond was so tough that it caused Mr. Asscher’s blade to split on his first attempt. This event once again brought attention to the remarkable strength and quality of the South African diamond.
Recently, the diamond industry is once again facing a momentous separation, as Anglo American announced a radical restructuring of its business on May 14th. Amid a rejected takeover proposal from BHP, Anglo American revealed plans to sell its coal, nickel, and platinum operations as well as its 85% stake in De Beers. BHP has until May 29th to make a new offer for Anglo, adding uncertainty to the industry’s future.
The impending change of ownership at De Beers is significant because it marks the end of a long-standing relationship between two major players in the diamond industry. Ernest Oppenheimer, Anglo American’s founder, joined the De Beers board in 1926. This shift marks the biggest shake-up in the diamond industry since 2000 when De Beers abandoned its policy of controlling diamond prices by managing supply. It remains to be seen what impact this change will have on the future of the industry and how it will affect those involved in it.
