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Venezuela Takes Over 3 Cement Companies

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The Associated Press

Published: June 20, 2008

CARACAS, Venezuela - President Hugo Chavez's nationalization of three foreign-owned cement businesses took effect Thursday.

News of the nationalization of the companies belonging to Mexico's Cemex SAB, France's Lafarge SA and Switzerland's Holcim Ltd., announced in April, was published in the Official Gazette.

The government is to have shares of at least 60 percent in Cemex Venezuela, Holcim Venezuela CA and Lafarge's Fabrica Nacional de Cementos.

But officials have said the current owners will be allowed to keep minority shares and the government is talking with the companies about terms of the nationalization.

Chavez assured owners Thursday that they will be compensated for their losses: "We are going to pay the investors that were here."

Speaking at an event with Paraguayan President-elect Fernando Lugo, Chavez also suggested that Venezuela should organize a joint cement company with Paraguay and Iran.

Cemex SAB spokesman Jorge Perez said his company was not making any comments about the nationalization.

When he announced the nationalization, Chavez said the government could not permit businesses to keep exporting raw materials while Venezuela needs cement to help confront a housing shortage.

The socialist president subsequently ordered Venezuela's largest steel maker nationalized.

His government last year took majority control of the country's largest telecommunications and electricity companies, and of oil projects previously run by some of the world's largest oil companies.

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