Post #119

🇦🇴🇧🇼Angola In Anglo - Botswana Outbidded? 🌍 On October 24 Angola's state-run gem producer Endiama EP submitted an offer to buy Anglo American Plc’s majority stake (85%) in De Beers. However, there is a catch - a similar deal was proposed to Anglo American by Botswana last month. Both countries are major African diamond producers, with Botswana already possessing a 15% stake in De Beers. 🔸 For Angola, participation in De Beers would mean access to the company's cutting-edge mining technologies and marketing system. 🔸 For Botswana, controlling shares are seen as a matter of national security and economic stability. Speaking about the country's bid, the President of Botswana said in late September: “We want effective control of the industry, we want our voice to be heard…” Though such a situation can hardly engender a real geopolitical standoff, as Angola clearly indicates its readiness to negotiate and accept a smaller share. Botswana, on the other hand, will probably face difficulties in mustering sufficient funds for its offer in any case. 🤝 The most probable outcome thus is that Anglo American's stake will be divided more or less equally between the two bidders if no one else steps in. After all, even if Botswana's ambitions are not fully realized, buying a struggling company with public money seems a less promising solution than more intensive diversification policies, for example. Devils Below