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(HERALD, BBC) Venezuela to nationalise local Mexican cement plants

Venezuela to nationalise local Mexican cement plants
BBC.

Caracas. Venezuela has said it will take over local plants and offices belonging to Mexican cement giant Cemex, as it proceeds with nationalising its cement industry. Cemex’s Swiss and French rivals Lafarge and Holcim have agreed to hand control of their local subsidiaries to Caracas.

However, a deal with Mexico’s Cemex "hasn’t been possible", said Venezuelan Vice-President Ramon Carrizalez. Venezuela has begun nationalising several industries as part of a drive toward "21st-Century socialism".

Mr Carrizalez said that Venezuela had acquired 89 percent of Lafarge’s Venezuelan operations for US$267 million and paid US$552 million for 85 percent of Holcim’s local unit.

The two firms have signed agreements setting out the process for transferring shares to the government.

Mr Carrizalez said Cemex had asked for US$1,3 billion for its Venezuelan operations.

A spokeswoman for Lafarge earlier said that the company was working to protect the interests of shareholders and staff based in the country.

Venezuelan president Hugo Chavez has accused foreign cement firms of demanding excessive profits and selling their cement overseas. Taking them over, he said, would allow his government to make faster progress with plans to end a massive housing shortage.

"We’re going to lower the costs of cement, the costs for building housing," he said in a televised address on Monday. Banking and telecommunications industries are also set to be taken over by the state. — BBC.

Labels: CHAVEZ, NATIONALISATION, VENEZUELA

posted by MrK @ 7:43 PM