Holcim secures compensation from Venezuela
By Chris Sleight14 September 2010
Holcim and the Venezuelan government have agreed details of a compensation package for the forced nationalisation of Holcim's assets and businesses in the country in 2008. The company will pay a total of US$ 650 million over the course of four years.
Holcim's businesses in Venezuela were seized in August 2008 along with those of Cemex and Lafarge as the government of Hugo Chavez forcibly nationalised the country's cement industry. At the time Holcim was reported to have agreed a compensation package of US$ 552 million for an 85% stake in its businesses.
However, in March 2009 Holcim launched international arbitration proceedings against Venezuela, when negations were terminated, and with no payments having been received. As part of this latest agreement, these proceedings at the International Centre for Settlement of Investment Disputes (ICSID) have been suspended.
Holcim says it has now received an initial down payment of US$ 260 million. The remaining US$ 390 million will be paid in four annual instalments.