Analysts: Cemex to negotiate total exit
Cement industry analysts expect that Cemex will negotiate its total exit from Venezuela amidst the nationalisation drive launched by President Hugo Chávez on April 4, paper El Norte reported.
Venezuela’s nationalisation program aims to control 60% of the local assets of Cemex, Holcim and Lafarge.
Cemex corporate policy is to have controlling stakes in its companies and, due to growth limitations, the company may try to get the government to buy 100% of its local assets, the report said.
In addition, analysts believe the company will use the compensation to cover a US$14bn debt resulting from the purchase of Australian construction material firm Rinker’s US assets in August 2007.
Analysts estimate the company might receive between US$350 and US$800mn for its assets in Venezuela, although other calculations vary from as little as US$222mn to as much as US$920mn.
The final amount is to be determined by Chávez, who has said it will be a fair price.
Published under Cement News
