South African diamond mining group De Beers is reported to be in talks about the sale of its brand name to a luxury global goods group.
The Financial Timessays discussions are believed to be at an advanced stage with France's LVMH, which includes premium brands such as Louis Vuitton, Moet and Hennessy.
The paper says that, although no deal has been concluded, the preferred structure is thought to be a joint venture that would target the retail market and may include opening shops around the world.
Analysts believe the $50 billion world diamond jewellery trade is wide open to a participant with a strong brand name.
Although De Beers controls about 60 per cent of sales of uncut diamonds, the retail market is highly fragmented and none of the major players has more than a small share.
Last month, when De Beers announced record rough diamond sales of $5.67 billion for 2000, managing director Mr Gary Ralfe said he hoped to soon release details of its plans to sell diamonds and diamond jewellery under the brand name.
He promised that the range would be aimed at the upper end of the market and sold "in the most prestigious shops in the most prestigious locations in the world's capital cities".
PA