According to a report in yesterday’s Sunday Times (UK) the US private equity firm Kohlberg Kravis Roberts & Co (KKR) wants to buy the diamond mining operations of BHP Billiton Ltd and Rio Tinto PLC RIO and merge them to create a challenger to the two diamond industry leaders De Beers (UK and South Africa) and Russian giant, Alrosa
KKR is said to be leading the bidding for BHP’s Ekati diamond mine in Canada for around $750 million, planning to combine Ekati with Rio Tinto’s $2 billion diamond mining business which is also up for sale.
(Though in fact neither company has yet confirmed that its putting its diamond businesses on the market).
The Sunday Times says thatt he combined businesses would control around 15% of world diamond supply.
