/ 10 January 2001

DE BEERS MULLS SALE OF NAME

SOUTH African diamonds group De Beers is considering selling its brand name to a large luxury goods group, as part of a strategic review to unlock the value of the prestigious name, the Financial Times reported on Tuesday. The report said the company, which controls about 60% of the sales of uncut diamonds, is in advanced talks with several luxury groups, including France’s LVMH, over options which include “an outright sale of the name.” Other options are understood to include a joint venture to own the brand with a third party, or a hybrid structure that would allow the other shareholder to buy control of the joint venture at a later stage. Although no decision has been taken, the preferred option is thought to be a joint venture to target the retail market, which could involve opening shops around the world. – AFP