Mexico: Cemex waits settlement for cement assets nationalised in Venezuela

Mexico: Cemex waits settlement for cement assets nationalised in Venezuela
Published: 19 October 2011

The Venezuelan government expects to ink in an agreement with Cemex, in the next weeks, whose Venezuelan assets were nationalised in 2008.

The Venezuelan Ambassador to Mexico, Trino Alcides Diaz, said President Hugo Chavez’s illness has delayed the government agenda  a little, and dismissed misunderstandings with Cemex, as in 2008 most of the cement assets in Venezuela went to the government control and due indemnification was settled.

Cemex claims US$1.2bn as payments while Venezuela is offering US$600m, and due to discrepancies on figures Cemex presented its case in the World Bank arbitrage Ciadi.

By end Sep Lorenzo Zambrano, president director Cemex, says the company should raise US$1bn divesting non strategic assets by end 2012. For the current period the sales volume should up up 1% for cement and 5% for concrete. Investments in fixed assets would be U$470mil. Zambrano estimates for 2012 an EBITDA of US$4.5bn - US$5bn.