This study will evaluate the effect of epoetin beta (NeoRecormon) on correction of anemia and quality of life in participants with diabetes and chronic renal failure and who are not receiving dialysis.

Inclusion Criteria:

• Type 1 or 2 diabetes
• Chronic renal failure (stage 2 to stage 5) defined by Glomerular Filtration Rate (GFR) less than (<) 90 milliliter per minute per 1.73 square meter (mL/min/1.73 m^2)
• Anemia related to chronic kidney disease and requiring treatment with erythropoiesis-stimulating agent (ESA) (2 values of hemoglobin less than or equal to 11 gram per deciliter [g/dL] during the 3 months prior to inclusion), and hemoglobin greater than 8 g/dL

Exclusion Criteria:

• Anemia due to a non-renal cause
• Poorly controlled hypertension
• Treatment with an erythropoiesis stimulating agent (ESA) within 3 months prior to the study
• Planned dialysis in next 3 months or organ transplant
• History of cancer except for basal cell cancer and cervical cancer in situ