De Beers open to idea of acquiring new assets, says CFO

Albert Robinson

De Beers is open to buying new assets at the right price, its chief financial officer said following the release of its financial results for the first half of this year. “We are open to M&A activity, but it’s got to be the right opportunity,” CFO Nimesh Patel told Reuters.

We will look at opportunities – the right quality, long-term sustainable and first and foremost at the right price. We benchmark against our own organic production.

Earlier this month, Canada’s Dominion Diamond Corp said it was being bought by The Washington Companies for $1.2 billion.

Diamond sales last year were hit in India, the third biggest market, by the withdrawal of high-value notes, but that market is recovering, De Beers says.

It has increased its 2017 marketing budget by 20 percent to around $140 million, including both its own advertising and a contribution to the industry body the Diamond Producers Association’s campaign to boost sales, the report added.

Source Idexonline