Explain why Rhodes and Barnato had made the decision to join companies to create De Beers Consolidated Mines.
Rhodes and Barnato decided to join companies and create De Beers Consolidated Mines for several reasons. One of the main reasons was to gain control over the diamond mining industry in South Africa. By consolidating their resources and operations, they could dominate the market and maximize profits.
Additionally, by forming a partnership, Rhodes and Barnato could leverage their respective strengths and expertise. Rhodes was a skilled businessman and politician with connections to influential figures, while Barnato was a successful diamond trader with experience in the industry. Together, they could combine their knowledge and resources to build a powerful and successful diamond mining company.
Furthermore, by joining forces, Rhodes and Barnato could also reduce competition and increase their bargaining power with suppliers and buyers. Consolidating their operations under one company would allow them to streamline processes, cut costs, and increase efficiency.
Overall, the decision to create De Beers Consolidated Mines was a strategic move that allowed Rhodes and Barnato to strengthen their positions in the diamond industry and establish a dominant presence in the market.