Diamond icon De Beers is still struggling to attract a buyer?

De Beers has struggled to attract a buyer after nearly two years on a market dulled by falling prices and the allure of lab-grown gems. The mining titan Anglo American has warned that it may take a third write-down in as many years on the company that was born in South Africa 130 years ago and went on to dominate the global diamond market. This is after a $2.9 billion drop last year and $1.6 billion charge the year before, bringing its estimated value to about $5 billion, as per reports.

Anglo’s bid to offload its loss-making company is not only being thwarted by the depressed market for mined diamonds, particularly in China, but is also complicated by a crowded field of suitors circling the sale, including at least three sub-Saharan governments and various private bidders, which makes any deal as political as it is financial, say Analysts.

Botswana and its president, Duma Boko, De Beers’ biggest producer partner with a 15-per cent holding, led a determined push to finalise a deal by last year, but to no avail. Other diamond-rich governments such as Angola and Namibia have also signalled interest, as have various sovereign wealth funds and a consortium led by former De Beers chief executive Gareth Penny. Botswana’s bid underscores its belief that it must manage the resource, which contributes about a third of its GDP, to capture more of the value chain and secure its economic future.

Anglo American has kept details of the sale negotiations under wraps, after fending off a hostile takeover bid from Australian rival BHP – saying that it would sell off De Beers and its coal and nickel operations in order to focus on iron ore and copper.