Angola and Botswana negotiate as they both want to take over De Beers
As the two Southern African nations attempt to seize control of Anglo American (AAL.L) and launch a new tab diamond business, De Beers, the mining ministers of Botswana and Angola met Friday in the capital of Botswana to discuss collaboration in the diamond industry.
Despite a decline in global diamond prices that has negatively impacted its economy, Botswana, which owns 15% of De Beers and provides 70% of its yearly rough diamond production, views the firm as a vital national asset.
Angola set the stage for a possible bidding war with its neighbor by first attempting to acquire a minority stake in De Beers and then submitting a proposal for a full stake.
During a brief discussion with media, Angolan Minister Diamantino Pedro Azevedo and Botswana’s Mines Minister Bogolo Joy Kenewendo talked about energy, logistics, and cooperation in the diamond sector. Prior to that, they had a forty-minute or so private meeting.
“At the top of everyone’s minds this year is the performance of the diamond industry and our collaborative efforts in bringing back the spark and the shine to the industry,” Kenewendo stated.
“As some of the largest producers of diamonds by quantity and value in the world, it is only right that we meet and join hands in discussing how to get the most out of this natural resource,” she stated.
The two ministers talked about “the interest of both countries in acquiring shares in the multinational De Beers,” according to a statement from Angola’s mines ministry, although it did not elaborate.
As they traveled to Gaborone for another meeting with President Duma Boko of Botswana, the two ministers declined to answer any questions.
In order to concentrate on other areas of its business, Anglo listed De Beers, one of the top diamond firms in the world, for sale for a $4.9 billion valuation.
