De Beers Consolidated Mines officials have announced a joint acquisition of the Diamond Trading Co. South Africa (DTC SA) with Ponahalo Holdings. Ponahalo will acquire 26%, while De Beers will assume the majority stake. De Beers said the deal is within an ongoing diversification for shareholders dating to the 2006 acquisition of Ponahalo. The new transaction, they added, aims to improve cash flows while strengthening the company balance sheet.
Barend Petersen, chairman, De Beers Consolidated Mines, hailed the agreement as a step forward for the company—and sub-Saharan Africa’s biggest economy itself as it continues emerging from the post-2009 recession. “We are pleased to align our operations to the transformation objectives of the country,” he said.
The Diamond Trading Co. of South Africa will be transferred under the auspices of s197 within the country’s Labor Relations Act, said De Beers. No changes to employee terms and conditions will follow, however.