Angola makes play for De Beers stake

Angola’s state-owned diamond company Endiama EP has formally offered to acquire a majority stake in De Beers Group, the storied gem producer owned by Anglo American (AAL.L), in what would be the country’s most ambitious outbound acquisition since the end of its civil conflict. The proposal, lodged on 24 October 2025, follows Anglo’s announcement that it will spin off or sell non-core assets as part of its portfolio refocus on copper and iron ore.

According to industry officials, Endiama is seeking between 51 % and 60 % ownership, valuing the unit near US$6.5 billion. The bid positions Luanda alongside two other potential buyers—a Gulf-based consortium and a Canadian private-equity group—but it carries strategic weight because Angola already accounts for roughly 10 % of global diamond output and hosts De Beers through joint-venture licences in Lunda Norte.

The move underscores Angola’s determination to integrate vertically along the diamond value chain, from exploration to cutting and marketing. The government has prioritised beneficiation and local sales under its 2023 Diamond Development Policy, aiming to raise in-country value addition from 10 % to 40 % by 2030. Officials said state backing for the acquisition would come via the national sovereign-wealth fund, using future oil receipts as collateral rather than drawing on reserves.

Market reaction was mixed. Anglo American (AAL.L) shares rose 1.8 % in London on speculative interest, while the benchmark gold price (XAUUSD) edged up 0.3 % to US$2 372/oz amid wider commodity momentum. South African peers rallied on expectations that a De Beers sale could release cash and lift regional joint-venture valuations. Analysts estimate a completed deal could redirect diamond supply routes toward Luanda and Gaborone, altering SADC trade dynamics and potentially challenging Botswana’s 50-year dominance in midstream processing.

Luanda’s offer also fits its broader post-OPEC diversification push. With oil output declining below 1.1 million b/d, Angola is betting on mining and energy-adjacent sectors to stabilise external balances. A De Beers majority stake would strengthen fiscal buffers via export royalties and could boost non-oil revenue by roughly US$400 million annually if integration targets are met.

Still, execution risks remain high. Anglo’s board has insisted on maintaining “responsible stewardship” over De Beers’s brand and supply-chain ethics, and any transfer to a state entity will face scrutiny from Western regulators and luxury-goods partners wary of governance lapses. Financing terms could also tighten if U.S. yields stay elevated and the dollar index (DXY) remains firm.

If successful, the transaction would mark a historic reversal of post-colonial ownership patterns—an African state controlling one of the world’s premier diamond brands. It would symbolise not only Angola’s economic rehabilitation but also the continent’s gradual move from raw-material dependence toward strategic asset control in global mining.