A diamond necklace may be admired for its design, craftsmanship and sparkle, but its journey begins long before it reaches a luxury boutique. Now, Richemont, the group behind Cartier and Van Cleef & Arpels, is reportedly exploring a closer connection with the source of these precious stones.
The Cartier parent company is in talks to join a consortium seeking to acquire De Beers, one of the world’s best-known natural diamond businesses. The discussions come at a crucial moment for luxury jewellery, as the industry navigates changing consumer preferences and competition from lab-grown alternatives.
A Closer Look at De Beers
In high jewellery, the choice of stones is central to the creation of a finished piece. De Beers operates earlier in that journey, mining natural diamonds and selling rough stones for cutting and polishing before they reach jewellery makers. Its influence also extends to diamond marketing, notably through its iconic ‘A Diamond Is Forever’ campaign, which helped cement the association between diamonds and lasting commitment.
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Anglo American, which owns 85% of De Beers, put the business up for sale in 2024, while the government of Botswana holds the remaining 15%. Reuters reported on October 15 that Richemont was discussing joining the Global Diamond Consortium, led by former De Beers chief executive Gareth Penny, which is seeking to acquire Anglo American’s stake. The proposed transaction values the De Beers diamond business at around $1bn, although Richemont’s participation is not guaranteed.
Why Richemont Wants In
Richemont’s potential investment could offer a closer connection to a material central to its jewellery maisons. Cartier and Van Cleef & Arpels transform precious stones into distinctive creations, from statement necklaces to intricate rings. An investment in De Beers could give the group a greater stake in the natural diamond supply chain, although it would not automatically guarantee supplies or give Richemont control over diamond prices.
The timing is significant. De Beers has faced pressure from falling rough diamond prices and weaker demand in key markets. Meanwhile, lab-grown diamonds have become an increasingly accessible alternative for consumers seeking the look of a diamond at a lower price.
The Natural Diamond Question
Lab-grown diamonds share the essential chemical composition and crystal structure of natural diamonds, but are created in controlled environments rather than formed over geological time. Their affordability has broadened consumer choice, particularly among buyers who prioritise size and appearance. Natural diamonds, meanwhile, continue to feature prominently in high jewellery, where craftsmanship and the selection of stones help define a creation’s character.
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Richemont’s potential involvement could signal a stronger interest in the future of natural diamonds within the luxury jewellery industry. Whether it leads to changes in sourcing, marketing or the way these stones are positioned remains to be seen.
Ultimately, the question extends beyond who owns a diamond mining business. As luxury consumers weigh tradition against newer alternatives, the challenge for the industry will be to articulate what distinguishes natural diamonds and how they continue to earn their place in fine jewellery.
