Luxury giant Richemont and US retailer Signet Jewelers are in talks to join a consortium that’s in prime position to buy diamond miner De Beers, according to five people familiar with the matter.

The emergence of support from the owner of luxury brand Cartier and major jewelry retailer Signet will be seen by the industry as a boon for natural stones, at a time when the sector is slowly emerging from one of its worst ever crises. The industry has been hit hard by a slump in Chinese demand and increased competition from lab-grown gems.

The two groups are in talks with Global Diamond Consortium — a vehicle headed by former De Beers CEO Gareth Penny — about joining the group, said the people, who asked not to be identified as the talks are private. While negotiations are advanced, there’s no guarantee that they’ll join, some of the people said.

GDC and Signet declined to comment. Richemont didn’t respond to requests for comment.

The consortium emerged in July as the preferred bidder to buy De Beers from miner Anglo American Plc, and is currently in talks with the government of Botswana, which already owns a stake in De Beers, about increasing its ownership to around 25%, Bloomberg reported on Tuesday.

GDC already includes Namibia and Angola — two of the largest diamond producers — as well as some of the biggest diamond manufacturing companies.

It’s not clear what size stakes Richemont and Signet are discussing taking. But given that the three Southern African states will have significant shares of the company — as well as multiple other private investors who are already committed — Richemont and Signet are likely to have relatively minor holdings should a deal be agreed.

Richemont is one of the world’s leading luxury goods groups, controlled by South African billionaire Johann Rupert. Its brands include Vacheron Constantin, Cartier and Van Cleef & Arpels, with its jewelry division accounting for about three-quarters of its business. Signet is one of the biggest jewelry retailers, owning Zales, Jared and Kay.

For years, the diamond industry has sought to win more support from luxury retailers to support the promotion of natural stones.

After bumper sales during the pandemic, the sector was already weakening when it was hit by a collapse in Chinese luxury spending that saw prices plunge. The rising popularity of synthetic stones, trade tensions and sudden geopolitical shifts have added more pain.

Anglo has been looking to sell the one-time diamond monopoly since it fended off an almost $50-billion approach from BHP Group in early 2024, but the process has been stymied by a crisis in the diamond market. Anglo has so far taken three impairments on the business in just three years, lowering its carrying value for the unit to $2.3-billion in February.