Wednesday, August 20, 2008

Venezuela's takeover of Cemex showcases determination to boost infrastructure construction

The Venezuelan government took control of Mexican cement group Cemex's plants in Venezuela in a showcase of Venezuela's determination to boost infrastructure construction by controlling the cement industry. In a statement sent to the Mexican Stock Exchange Tuesday, Cemex confirmed that the Venezuelan government had taken control of the company's partnership operations in Venezuela.
Cemex's expropriation came after collapsed negotiations during which Caracas asked to buy the majority shareholding, but they failed to agree on the prices. The takeover marked the latest move of the country's nationalization of major foreign-controlled businesses, including companies in the telecommunications, oil and steel industries. 'Now the cement we produce will not make millionaires of some men far away, (and) it will be used for our houses, our infrastructure and our national development plan,' Venezuelan Energy Minister Rafael Ramirez said after the takeover of Cemex.

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