British miner Gemfields has bought the jeweller Faberge in a deal worth £89m.

One of Gemfields' own shareholders sold the Russian firm, best known for producing 50 jewelled eggs for Russian Tsars between 1885 and 1916.

The 170-year-old jeweller was relaunched in 2009 by Pallinghurst, the investment company owned by the former boss of BHP Billiton, Brian Gilbertson.

If approved, the all-share deal will allow Gemfields to break into the luxury goods market and better compete with rival De Beers, famous for its diamonds.

The new company will be able to use the gemstones it mines in its jewellery, which can then be sold under the Faberge brand name.