EL UNIVERSAL
MAYELA ARMAS H.
FIDEL EDUARDO OROZCO

Last April President Hugo Chávez announced his plans to nationalize foreign-owned cement companies operating in Venezuela, in June he issued a directive to begin negotiating handover agreements with cement makers, and August 18 at midnight Venezuela took control of the industry.

Cement groups Lafarge (France) and Holcim (Switzerland) agreed to the terms established by the Venezuelan government. Under the pact, they are keeping a minority stake in the cement companies, while Mexican Cemex's Pertigalete plant, northeast Venezuela, was seized Monday at midnight, as the firm refused to accept both the terms and the compensation the Venezuelan government proposed. Cemex suggested a price that was "way above the real price," Venezuelan Vice-President Ramón Carrizalez told reporters.  

The boards of directors of Lafarge and Holcim signed memorandums of understanding in the Vice President's Office. Under the instruments, two joint ventures will be organized. 

In the case of Lafarge, Venezuela purchased an 89 percent stake in the French company. Therefore, Lafarge will retain 11 percent of the shares. Out of this stake, about 6 percent of shares are traded in the Caracas Stock Exchange. Venezuela will pay USD 267 million for the package of shares.

Venezuelan bought an 85 percent stake in Holcim. Consequently, the Swiss firm will keep 15 percent of the shares. In this case, Venezuela will pay USD 552 million. 

Overall, Venezuela will pay USD 819 million and the operation will be closed within the following 60 days. Venezuelan Minister of Energy and Petroleum and President of Pdvsa Rafael Ramírez said that "Venezuela will make the purchase." However, the minister would not explain whether the cement companies would be managed by Pdvsa or any division of the Ministry of Basic Industries and Mining.

Meanwhile, Carrizález claimed that "a transition phase has begun. During this phase, labor stability is guaranteed."

Ramírez, who also led the negotiations with the cement companies, said that with Lafarge and Holcim "a transparent process was in place; audits were conducted and we are very pleased that both companies have accepted the price to transfer the shares. This move will help us support Venezuela's development in housing and infrastructure."  

The Venezuelan government Monday at midnight took over the facilities owned by Cemex in Venezuela. Just before midnight, a number of oil workers, together with Minister Ramírez and Tarek Saab, governor of northeastern Anzoátegui state, rallied outside the Pertigalete plant, in Puerto La Cruz. Ramírez branded the Mexican cement maker as a "predatory stronghold."

Before the deadline for nationalization of the foreign cement companies expired, the military seized Cemex' facilities in northwestern Zulia state, northwestern Lara state, and northeastern Anzoátegui state.

Translated by Gerardo Cárdenas