Signet Shares Hit 52-Week High as Bloomberg Reports De Beers Consortium Talks

Signet Jewelers (NYSE: SIG), owner of the Kay, Zales and Jared jewellery chains, is reportedly in talks to join the consortium preferred to buy De Beers, Bloomberg reported. The report said Richemont (SWX: CFR), the luxury group, is also in talks, citing five people familiar with the matter.

Signet shares were up 9.16% at $117.85 at last check, a delayed quote from 3.35pm in New York (8.35pm in London), before the 4pm close. The previous close was $107.96. That is above the prior 52-week high of $109.06 and up from $84.32 on the 10th of July. Richemont rose 0.72% to CHF 175.05 in Zurich at 5.31pm local time.

The talks are reportedly advanced, though there is no guarantee either company will join. Neither Signet nor Richemont has confirmed, Richemont was not available for comment, and Anglo American declined to comment.

The consortium is led by Gareth Penny, De Beers’ former chief executive, and has been preferred bidder since July. It includes Namibia and Angola. Botswana, which holds 15%, is in talks to raise that to about 25% and holds a right of first refusal, meaning it can match a rival deal. Stake sizes, price and terms are undisclosed, and any stakes could be small.

For Signet, which also runs H.Samuel and Ernest Jones in the UK, a stake would be a way into natural-diamond supply, a market hit by weak Chinese demand and competition from lab-grown stones.

RBC said Richemont’s role would be strategically meaningful but amounts to positioning rather than a financial event. Jewellery makes up about three-quarters of Richemont’s business.

Botswana’s right of first refusal remains unresolved, and no signing date has been reported.