De Beers Mine Firm to Split, Base One Unit in Switzerland
De Beers Consolidated Mines Ltd., the huge South African diamond-mining concern, said today that it will split itself in two and base one of the newly formed companies in Switzerland.
The move appeared to be an attempt by the company to minimize its exposure to potential political turbulence in South Africa, where a newly energized black majority has vowed to nationalize major industries if it wins power from the white minority.
But De Beers Chairman Julian Ogilvie Thompson denied there were political reasons for the company’s split, saying that it reflected the international nature of De Beers and the diamond business and that it was in the interests of shareholders and the industry. He also said the company’s earnings jumped 37% last year.
Thompson made his comments at a Johannesburg news conference to which London reporters were hooked up.
De Beers’ shares jumped $2.97, to $22.49, on London’s Stock Exchange after Thompson spoke.
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