Is De Beers undervalued post-Anglo takeover?

**De Beers is not undervalued post-Anglo takeover** based on the following analysis:

1. **Anglo American's Valuation Adjustment**: Anglo American has written down De Beers' value twice in the past year, from $7.6 billion in 2023 to $4.1 billion in 2025. This reduction reflects the prevailing diamond market conditions and the overall decline in De Beers' book value.
2. **Market Consensus and Recent Sales Activity**: The market consensus for De Beers' valuation is closer to $3 billion, which is less than the $4.1 billion figure used by Anglo American. This suggests that the market may not fully agree with Anglo American's assessment of De Beers' value.
3. **Bidder's Perspective**: The sale process for De Beers has attracted significant interest, including from former De Beers CEOs and major diamond mining companies. However, the bidding war and the competitive dynamics among potential buyers indicate that the valuation may be subject to negotiation and could be influenced by market conditions and strategic interests rather than purely financial metrics.
4. **Strategic Considerations**: The sale of De Beers is part of a broader strategic overhaul for Anglo American, aimed at focusing on more profitable segments of the business and defending against potential takeovers. This strategic context suggests that the valuation of De Beers may not be based solely on financial metrics but also on the company's long-term potential and its fit within Anglo American's revised business strategy.
5. **Long-Term Prospects**: While De Beers has faced challenges due to weak diamond demand and production cuts, the company has forecasted a recovery in output to 28-31 million carats by 2027. This potential recovery, along with possible strategic shifts towards luxury branding and market consolidation, could influence how De Beers is valued in the future.

In conclusion, while De Beers may represent a valuable asset for Anglo American in a strategic context, the current market conditions and the bidding dynamics suggest that the company is not undervalued based on traditional financial metrics. The valuation is influenced by strategic considerations and the potential for future recovery in the diamond market.