Venezuela to pay US$ 600 million to Cemex
By Helen Wright02 December 2011
Cement producer Cemex said it is in line to receive US$ 600 million in compensation from the Venezuelan Government following the expropriation of its cement businesses in the country in August 2008.
Cemex said its Dutch subsidiaries were negotiating with Venezuela's government and its public entity, Corporación Socialista del Cemento, over the compensation deal, which would also cancel US$ 154 million of accounts payable by Cemex subsidiaries to Cemex Venezuela.
The compensation would be paid by US$ 240 million in cash and US$ 360 million in various negotiable securities issued by Venezuelan state-owned petroleum company, Petróleos de Venezuela.
Cemex said it was pleased with the resolution of this dispute and looked forward to furthering the relationship between Venezuela and Mexico.
The forced nationalisation of Cemex Venezuela also saw plants owned by Holcim and Lafarge seized. At the time of the seizures, Lafarge and Holcim had negotiated compensation with the Venezuelan government.
However, Cemex was believed to be holding out for a US$ 1.2 billion package which the government was not prepared to pay. As a result, troops seized the company's cement plants, with a total capacity of 4.6 million tonnes per year, in August 2008.