Cemex said yesterday it could turn to international arbitration to resolve a dispute with Venezuela’s government, which seized the company’s unit there in a nationalisation drive.
"It’s one of several [options]," said Rodrigo Trevino, Cemex chief financial officer.
Hugo Chavez, the Venezuelan President, took over plants owned by Cemex, the world’s No. 3 cement maker, on Monday as part of his bid to run key industries in the South American oil-producing nation. Cemex, unlike European rivals Holcim and Lafarge, did not strike an agreement to sell to the Chavez government and now faces an increasing possibility of losing all, or most, of its investment.
Cemex was looking for US$1.3bn in compensation but Venezuela said the company would be lucky to get US$400-million.