Angola launches bid for De Beers majority stake sparking competition with Botswana
Angola has reportedly made a bid for a majority stake in De Beers, the renowned diamond company currently owned by Anglo American. This strategic move sets the stage for a potential high-stakes competition with neighbouring Botswana, which has also expressed a strong desire to assume full control of the diamond giant. De Beers, recognized as one of the world's leading diamond companies, operates across key regions including Botswana, Namibia, Angola, South Africa, and Canada, making its ownership a matter of considerable geopolitical and economic importance in Southern Africa.
The offer for a majority stake was submitted by Angola's state-owned diamond company, Endiama, confirming earlier reports. This represents a significant shift in Angola's declared interest, as the nation had previously indicated in September its intention to seek only a minority stake in De Beers, believing at the time that the company should ideally be led by a private-sector firm. The current bid, therefore, signals a more assertive and direct play for control by the Angolan government.
Botswana, already holding a 15% ownership stake in De Beers, views the company as a crucial national asset, despite the current downturn in global diamond prices which has significantly impacted its economy. In July, Botswana's mining minister publicly declared the Southern African nation's ambition to take complete control of De Beers. This long-standing relationship and strategic perspective underline Botswana's deep vested interest in the future of the diamond company.
The decision to put De Beers up for sale was made by Anglo American amid a challenging period characterized by falling global diamond prices. This market pressure has created an opportunity for various entities to vie for ownership of the prestigious company. According to a Reuters report from June, De Beers had already garnered interest from at least six different consortia, highlighting the widespread recognition of its enduring value and potential, despite the current market volatilities.
