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Venezuelan government to expropriate CEMEX outright
CARACAS
Petroleumworld.com, Aug 19, 2008Venezuelan Vice President Rafael Carrizales announced Monday that the government was nationalizing the local unit of international Mexican cement company CEMEX after negotiations to give Venezuela a majority shareholding failed.
"It was not possible to arrive at an agreement with them (Cemex) and the next step that we must take is to proceed with expropriation," Carrizales told reporters.Carrizales said Cemex's owners were "asking a price way above the real price ... They were asking for more than 1.2 billion dollars," when its valued "way below" that amount.
Carrizales did said that in the case of the "friendly negotiations" with Lafarge and Holcim, Venezuela obtained 89 percent controlling shares of the French company for 257 million dollars, and 85 percent of the Swiss firm for 552 million.
Cemex, produces 52 percent of Venezuela's cement -- accounting for three percent of its global sales and its Venezuelan operation employs more than 3,000 people, 95 percent of them Venezuelans.
Chavez on Sunday referred to the expropriation of Cemex in his weekly radio program, saying: "So tomorrow, we'll go ahead with nationalizing and regaining the cement industries."The expropriation is part of a push by Venezuela's Bolivarian socialist president, Hugo Chavez, to takeover the country key industries and place them under its control.
"The government will not stop, now or ever," Chavez said .
"While I'm in power, with your help and God's, Venezuela will march down the road of equality, social justice and socialism."In a press release late monday CEMEX acknowledge the government order saying:
MONTERREY, Mexico, Aug 18, 2008 " CEMEX S.A.B. de C.V. announced today that, according to a press release issued by Petroleos de Venezuela S.A. (PDVSA), PDVSA will proceed to take operational control of the plants of CEMEX Venezuela on Monday, August 18, 2008, on behalf of the Government of Venezuela."
CEMEX is a growing global building materials company that provides high quality products and reliable service to customers and communities in more than 50 countries throughout the world.
Story from Petroleumworld
Petroleumworld 2nd Update - 19 08 08 1100 GMT
Petroleumworld 1st Update - 19 08 08 1000 GMT
Original story Petroleumworld 18 08 08 1600 GMT
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