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Cemex challenges nationalisation | Cemex challenges nationalisation |
(about 4 hours later) | |
Mexican cement giant Cemex plans to go to the World Bank to seek arbitration after Venezuela's government seized the firm's local subsidiary. | Mexican cement giant Cemex plans to go to the World Bank to seek arbitration after Venezuela's government seized the firm's local subsidiary. |
Cemex argues that the move to take over the firm's assets in Venezuela and nationalise the business, is illegal. | Cemex argues that the move to take over the firm's assets in Venezuela and nationalise the business, is illegal. |
Unlike other cement firms Holcim and Lafarge, which have agreed to hand over local subsidiaries to the Venezuelan government, Cemex has yet to agree. | Unlike other cement firms Holcim and Lafarge, which have agreed to hand over local subsidiaries to the Venezuelan government, Cemex has yet to agree. |
President Hugo Chavez plans to nationalise a number of businesses. | |
'International law' | 'International law' |
Government officials, with the backing of the National Guard, took over the firm's factories on Monday after 60 days of talks ended without agreement. | Government officials, with the backing of the National Guard, took over the firm's factories on Monday after 60 days of talks ended without agreement. |
Cemex now intends to go to the International Centre for Settlement of Investment Disputes, arguing that the move was a "flagrant violation" of the country's constitution. | Cemex now intends to go to the International Centre for Settlement of Investment Disputes, arguing that the move was a "flagrant violation" of the country's constitution. |
The firm said it was offered $650m for its local operations - a sum that "significantly" undervalued the business. It had wanted $1.3bn (£697m) | The firm said it was offered $650m for its local operations - a sum that "significantly" undervalued the business. It had wanted $1.3bn (£697m) |
"The Venezuelan government actions highlight a lack of respect for the principles of international law and the treaties relating to reciprocal protection of investments," said the firm. | "The Venezuelan government actions highlight a lack of respect for the principles of international law and the treaties relating to reciprocal protection of investments," said the firm. |
France's Lafarge and Swiss group Holcim had already handed over local subsidiaries to Caracas by the time Cemex was seized on Monday. | |
Other industries set to be nationalised include banking and telecommunications. | Other industries set to be nationalised include banking and telecommunications. |
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