Argos sees a solution to Venezuela compensation?

Argos sees a solution to Venezuela compensation?
Published: 07 October 2010

Colombia’s Cementos Argos thinks a final settlement of compensation for the expropriation of its operations in Venezuela, can be reached with the revival of diplomatic relations.

Colombia and Venezuela began approaches last August to achieve a restoration of trade relations, broken by President Hugo Chavez’s decision to protest the signing of a military agreement between Bogota and the United States, which later fell by the wayside by a court decision.

’With the reactivation of the Colombian-Venezuelan relations, Cementos Argos sees the first steps to reach a final settlement of compensation for expropriated assets of owned cement by Cemento Andino Corp’, the company said in a statement.

Cementos Argos, owned by Colombia’s largest conglomerate, Antioquia Business Group (GEA), said that it has been waiting for the paperwork for over a year now to set the value and payment of compensation, since the Venezuelan National Assembly approved the expropriation of Cemento Andino in 2007.

Cemento Andino, which can produce 750,000t of clinker, was bought by Argos in 1998 by US$81m after it was privatized by the Fondo de Inversiones de Venezuela. Argos did not report the amount of compensation relating to Cemento Andino that it is waiting for.