Gertler Vs. Leviev: DGI Gets Exclusive Angolan Marketing Rights

Two reports in the Israeli financial daily TheMarker say Israeli rough diamond trader Dan Gertler has received an exclusive right to market Angola’s rough diamonds – at Lev Leviev’s expense. Conflicting information, business interests and an active rumor mill add to the confusion in the market.

According to the reports, the Angolan government has awarded Gertler the rights to export some of the rough diamonds previously marketed by Leviev.

But the story is a little more complicated then that. Leviev, through Ascorp, held exclusive rights to market all of Angola’s rough. This deal ended over a year ago when the country decided to not rely completely on outsiders and gave state company Endiama all of the rights.

Endiama in turn gave daughter company SODIAM responsibility for the exports and SODIAM signed two deals: one was with Leviev’s LLD to open a joint marketing office in Ramat Gan, and another with Lazar Kaplan, a DTC Sightholder, to do the same in Antwerp. A third office, also with Lazare Kaplan, is expected to open in New York.

Lazare Kaplan signed a four year technical cooperation agreement in April 2004, before the marketing deals.

It is understood that the deal between Angola and Gertler is closed and it is at Leviev’s expense. It is not known why Leviev lost favor with the Angolans after being hailed in up to now as the one who would bring beneficiation to southern Africa.

Market rumors say the battle is bigger and involves other interests and even other industry power players. For instance, what role will De Beers play in Africa in the future. Others ask where Gertler will find the cash to pay for the goods.

Another question is what role will SODIAM play, and - considering the massive expulsion of illegal alluvial diggers - is Angola re-assessing its diamond policies.

Gertler chose not to comment, Leviev was not available.