Signet’s reported De Beers bid fits natural diamond strategy, UBS says Proactive uses images sourced from Shutterstock

Signet Jewelers Limited (NYSE:SIG)’s potential involvement in a consortium seeking to acquire De Beers is aligned with its natural diamond strategy, UBS analysts wrote in a note. 

Natural diamonds made up about 40% of Signet’s calendar 2025 sales, according to analysts.  

UBS said the potential investment lines up with the company’s focus on higher price points and more premium brands, such as Blue Nile. 

According to Bloomberg, Richemont and Signet are in advanced talks to join the Global Diamond Consortium, which is led by former De Beers CEO Gareth Penny. The group is seeking to acquire De Beers from Anglo American. A separate Bloomberg report cited a potential valuation of about $1 billion. 

UBS cautioned that the discussions may not lead to a transaction and that neither company’s participation is assured. The analysts noted that three Southern African governments and other private investors are expected to hold significant ownership positions, so Richemont and Signet could ultimately hold relatively small interests. 

The firm said it views potential participation in De Beers mainly through a strategic lens rather than as a meaningful near-term earnings catalyst. 

UBS said it will be watching the size and valuation of Signet’s stake, the associated capital commitment, and whether participation delivers meaningful commercial or supply chain advantages. Until those factors become clearer, the firm does not see the reported discussions as materially changing its earnings outlook or valuation for Signet. 

The firm pointed to initiatives implemented over the last five years to strengthen omnichannel capabilities, improve the jewelry assortment and optimize the supply chain. UBS sees a path to continued EBIT margin recapture over time and forecasts a 13% five-year EPS compound annual growth rate. 

UBS rates Signet a Buy with a $136 price target.