Angola’s state-owned diamond company, Endiama, has submitted a formal offer for De Beers, which is currently owned by Anglo American.

The move follows reports that Botswana, already a key partner in De Beers’ operations, is also seeking to gain control of the 136-year-old diamond giant.

De Beers operates across Botswana, Namibia, South Africa, and Canada, and remains a cornerstone of Africa’s diamond trade.

Anglo American, which owns 85% of De Beers, wants to offload its stake as part of a comprehensive restructuring effort to streamline its portfolio.

The divestment marks the end of a century-long relationship between Anglo and De Beers, one that helped shape both the diamond industry and South Africa’s mining economy.

According to sources quoted by Reuters, Angola’s bid aims to establish a partnership in which Botswana, Namibia, South Africa, and Angola all participate meaningfully, ensuring that no single party dominates.

Angola recently overtook Botswana as Africa’s top diamond producer by value. The country’s diamond industry has experienced significant growth in recent years, driven by new discoveries and reforms aimed at attracting foreign investment.

De Beers and Endiama have been collaborating in Angola, and in August, they announced the country’s first kimberlite field discovery in more than three decades.

Kimberlite is the volcanic rock that often contains diamonds, and such finds can reshape production prospects for years to come.

Angola’s mining minister previously said that Endiama was ready to work with both governments and private investors to ensure De Beers remains “an independent, globally competitive commercial enterprise.”

Anglo American values De Beers at roughly $4.9 billion, despite having written down $3.5 billion from its valuation over the past two years.

Botswana, which owns 15% of De Beers, is unlikely to step aside quietly. The country views the diamond producer as a strategic national asset and a key pillar of its economy.

De Beers mines most of its diamonds in Botswana, which accounts for about 70% of the company’s rough diamond output.

Botswana’s mining minister said in July that the government wanted to take full control of De Beers to maintain its influence over the global diamond supply chain.

The golden era taht slowly faded

Founded in 1888 by Cecil Rhodes, De Beers began as a consolidation of mining ventures in Kimberley, South Africa, named after the De Beers brothers, who owned the farm where diamonds were first discovered.

Over the next century, the company became synonymous with the diamond trade. Under the leadership of the Oppenheimer family, who took control in the early 20th century, De Beers built a global empire.

Through the Central Selling Organisation, it effectively controlled the world’s diamond supply, dictating prices and shaping the luxury market.

Anglo American’s acquisition of De Beers in 1926 linked the two companies in a partnership that dominated South Africa’s economy for decades.

De Beers provided the financial muscle that allowed Anglo to expand into industries from gold and platinum to manufacturing.

However, that golden era faded with the rise of synthetic diamonds and changing consumer preferences.

In 2011, the Oppenheimer family sold its remaining $5.1 billion stake in De Beers to Anglo American, ending nearly a century of family involvement.

Now, Anglo itself is preparing to let go of the diamond business as it undergoes a major overhaul to fend off a takeover bid from mining giant BHP.

The restructuring plan includes selling De Beers, its platinum assets, and Australian coal mines—a significant shift for one of the world’s oldest mining companies.

Diamond prices have fallen sharply due to weakening demand, with the company slashing prices by 10% in 2024 after halting supply the previous year.

Anglo subsequently cut De Beers’ valuation by R30 billion in February. The rise of lab-grown diamonds has further eroded market dominance, offering cheaper and more sustainable alternatives that appeal to younger consumers. (BUSINESS INSIDER AFRICA)