Angola makes an offer for the bulk of De Beers, according to a source

Angola has created a new business entity called De Beers and bid for a majority ownership in Anglo American (AAL.L), a source familiar with the situation told Reuters on Friday. This might lead to a confrontation with neighboring Botswana, which is also vying for control of the diamond producer.

Located in Botswana, Namibia, South Africa, and Canada, De Beers is one of the top diamond enterprises in the world.

According to the source, the offer was made by Endiama, the state-owned diamond corporation in Angola, which supported a Bloomberg News article.

De Beers and Endiama are working together to search for diamonds in Angola, and in August, the company revealed the first kimberlite field discovery in the nation in thirty years. The precious stones may be found in the igneous rock kimberlite.

DE BEERS AVAILABLE. PRICES FOR DIAMOND DROP

At least six consortia expressed interest in De Beers, which Anglo put up for sale in June when diamond prices dropped, according to a June Reuters story.

De Beers has $4.9 billion in Anglo’s valuation, including $3.5 billion in impairments over the last two years.

Both Anglo American and the mining ministry of Angola chose not to respond. It was not immediately possible to contact Endiama for comment.

Botswana, which currently owns 15% of De Beers and provides 70% of its yearly supply of rough diamonds, views the firm as a vital national asset, even if the price decline has severely harmed its economy.

The Southern African nation’s mining minister stated in July that it aimed to acquire complete control of De Beers. It was also not immediately possible to get in touch with Botswana’s mines minister for comment.

Angola stated in September that government was looking to acquire a minority share in De Beers and believed a private company should run the company.