Investing.com -- Anglo American (JO: AGLJ ) Plc is in preliminary discussions with banks about a possible initial public offering (IPO) for its diamond unit, De Beers, Bloomberg News reported sources familiar with the matter. The move is part of the company’s ongoing restructuring process, which CEO Duncan Wanblad outlined last year.

Anglo American, which holds an 85% stake in De Beers, is following a dual-track process in its efforts to exit the diamond business. This strategy involves seeking a buyer for the struggling De Beers unit while simultaneously preparing for a potential IPO as an alternate solution.

The decision to move away from the diamond industry was made by the company as part of a significant restructuring initiative. This transformation was instigated by Wanblad in response to a $49 billion proposal from BHP Group (NYSE: BHP ), which he successfully resisted.

The restructuring plan has led to significant changes for the company. Anglo American has already agreed to sell its coal and nickel mines and is set to exit the platinum industry later this year. This leaves De Beers as the last remaining asset on the divestment list.

The decision to exit the diamond business comes after a series of write-downs for De Beers. In 2025, Anglo American reduced the value of De Beers by $2.9 billion, following a $1.6 billion write-down in 2024. The last recorded value of the diamond unit was $4.1 billion.

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