Angola has bid for a majority stake in Anglo American unit De Beers, a source familiar with the matter told Reuters on Friday, setting up a potential standoff with neighbouring Botswana which is also seeking control of the diamond producer.

De Beers, one of the world’s leading diamond companies, operates in Botswana, Namibia, South Africa and Canada.

The source said Angola’s state-owned diamond company Endiama had submitted the offer, confirming a report by Bloomberg News.

De Beers is jointly exploring for diamonds in Angola with Endiama and in August announced the country’s first kimberlite field discovery in three decades. Kimberlite is an igneous rock that can contain the precious stones.

DE BEERS UP FOR SALE AS DIAMOND PRICES DROP

De Beers, put up for sale by Anglo amid falling diamond prices, had attracted interest from at least six consortia, according to a Reuters report in June.

Anglo values De Beers at $4.9 billion after recording $3.5 billion in impairments over the past two years.

Anglo American and Angola’s mines ministry declined to comment. Endiama could not immediately be reached for comment.

Botswana – which currently owns 15% of De Beers and contributes 70% of its annual rough diamond production – considers the company a strategic national asset, despite the slump in prices, which has badly hurt its economy.

Its mining minister said in July that the Southern African country wanted to take full control of De Beers. Botswana’s mines ministry also could not immediately be reached for comment.

Angola said in September that it was seeking a minority stake in De Beers and thought it should be led by a private-sector firm.

Source: Reuters