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Chronology of Venezuela 's nationalization of key industries
CARACAS
Petroleumworld.com, Aug 20 , 2008Venezuela 's takeover of the country's cement industry is only the latest step in a series of nationalizations of strategic industries launched by President Hugo Chavez in February 2007 following his reelection two months earlier.
In the majority of cases the government reached deals to buy up majority shareholdings from the local and foreign owners of the companies targetted.
Here is a chronology of Chavez's march of nationalization:
- February 3, 2007: The government buys a majority of telephone company CANTV, which was owned by Verizon of the United States.
- February 8, 2007: The government acquires control of power generator Electricidad de Caracas from US firm AES.
- February 13, 2007: State oil giant PDVSA buys power generator Electrica Seneca from US group CMS Energy .
- May 1, 2007: The Chavez government launches the nationalization of the oil -rich basin the Orinoco Belt, where 13 foreign firms were operating under exploration contracts. Most of the companies eventually reach agreements to sell control of their operations to the government, but US oil titans ExxonMobil and ConocoPhillips defend their interests in legal complaints filed in international institutions.
- April 3, 2008: Chavez announces he will nationalize the cement industry, giving three foreign-owned producers controlling 90 percent of the local market a deadline to negotiate mutually acceptable prices for their interests.
- May 12, 2008: The government passes a law to take over the iron and steel operations of Orinoco Ternium-Sidor, of which it already controls 20 percent.
The government is now negotiating to buy a majority of the company; the Amazon Consortium, a group of Brazilian, Venezuelan, Argentine and Mexican investors, still hold 60 percent of the shares.
- July 31, 2008: Chavez declares the government's intention to buy the Banco de Venezuela , controlled by Spanish banking group Santander.
- August 18, 2008: Caracas reaches deals to buy majority shareholdings in the local cement operations of France's LaFarge and Switzerland's Holcim, but fails to reach a deal with Cemex of Mexico by a Monday, midnight deadline. It declares it is taking over Cemex's Venezuelan operations, which count for 50 percent of the domestic market.
Story from AFP
AFP 19 2030 GMT 08 08
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