By: CNBC Africa

A source familiar with matter has told Reuters that Angola has submitted a bid for a majority stake in De Beers, the diamond producer being sold by Anglo American.

The bid, made by Angola's state-owned diamond company Endiama, sets up a potential standoff with Botswana, a neighboring country that has also expressed its desire to take full control of De Beers. Botswana currently owns a 15% stake in the company and contributes 70% of its annual rough diamond production.

The move comes as Anglo American values De Beers at $4.9 billion amid a global slump in diamond prices. The bid confirms an earlier report by Bloomberg News. Anglo American, Angola’s mines ministry, and Endiama have declined to comment or could not be reached.