De Beers Tries to Counter a Growing Threat: Man-Made Diamonds
Lab-grown diamonds have become popular compared to natural diamonds since they are regarded as a decent alternative and for the customers these diamonds cannot be distinguished from natural diamonds. Many companies are selling human-made diamonds, and according to experts, these diamonds are similar to natural diamonds because they contain same physical and chemical properties as natural diamonds and thus they are marketed the same way as natural diamonds (MacDonald). There is a threat in the diamond market because artificial diamonds have taken the market and companies can no longer charge premium prices for diamonds which depended on scarcity. De Beers is countering these counterfeit diamonds with different devices used by jewelry makers and diamond wholesalers. Anglo American PLC that owns De Beers finds it crucial to containing lab-grown diamonds, and therefore it has invested more in profitable businesses. Today, diamond stones dug from the ground are more than lab-grown diamonds and synthetic producers produce a maximum of 350, 000 karats of diamond compared to 135 million karats mined annually (MacDonald).
Secret to Hostess’s Comeback: Making the Same Old Twinkies
Through Special-purpose acquisition company way, the snack company has gone public, and this reduces risk associated with the initial public offering. Gores is planning to acquire Hostess at a value of $2.3 billion, and private equity owners of Hostess will retain their major stakes and management roles (Driebusch). Hostess does not suit to the present eating health trend, and this was a major concern for Alec Gores and other investors. However, the company has a potential to grow, and last year the company generated revenue of $620.8 million and recorded a profit of $88.8 million. Gores Holdings Company shares are trading up at approximately 30% even before the merger is announced. Hostess has turned around since 2012, and the company was revived by Mr. Metropoulos restored the top brands of the company (Driebusch). The new Hostess reduced manufacturing, pension, union contracts and distribution costs. Production in the company was also automated, and the merger has increased equity of Gores by $375 million.