Venezuela: The Venezuelan government has agreed to pay US$600 million to settle a claim from Cemex over the 2008 nationalization of Venezuela's cement sector. The case is one of many which the Hugo Chavez administration is facing after nearly 13 years of sweeping socialist reforms, including widespread nationalisations across the South American OPEC member's economy.
A Venezuelan government statement said the amount corresponded to 76% of the shares in the expropriated local unit but it was less than half the US$1.3bn Cemex had originally sought. "We've reached a favourable deal between both parties," Industry Minister Ricardo Menendez said in the statement. The government will pay US$240m initially, followed by four annual payments of US$90m, he said.
"We are convinced the agreement has been positive for everyone," the Venezuelan Information Ministry statement quoted Jaime Elizondo, Cemex's president for South America and the Caribbean, as saying.
The Chavez government announced the takeover of the cement sector in April 2008, targeting Cemex, Holcim and Lafarge. Lafarge and Holcim agreed to stay on as minority partners. Cemex disputed the case at the World Bank's International Center for Settlement on Investment Disputes. In late 2010, the court recognised Cemex's right to sue for the loss of its assets.
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