Mineweb reported Botswana will not increase its shares in De Beers, leaving Anglo American (LSE:AAL) with the full $5.1 billion price tag for a buy-out.
As quoted in the market news:
Diamond-rich Botswana had a right to raise its shareholding in the company to 25 percent from 15 percent, a move that would have cost it $1.3 billion at a time when it is striving to contain government spending.
The company and the country are deeply entwined. De Beers is the world’s largest diamond producer by value and more of the precious gems come from sparsely populated Botswana than any other nation.