Venezuela, Cemex settle claim related to nationalization

Venezuela and the Mexican cement company Cemex settled on Wednesday the claim that followed the nationalization of the cement maker. Venezuela will pay 75.7% of Cemex's shares for a total of USD 600 million.

The agreement was signed by Ricardo Menéndez, the Venezuelan Minister of Industry and Vice-President for Productive Economy, and Jaime Elizondo, President of Cemex South America and the Caribbean. The shares will be paid in several parts. The down payment will amount to USD 240 million and will be disbursed in the next few days. The remaining USD 360 million will be paid in four parts, amounting to USD 90 million each, Menéndez said.

Menéndez added that "the two parties have reached a favorable agreement under which the per capita consumption of cement in Venezuela will be doubled. This represents a 595 pound increase per person per year," the Ministry reported in a press release.

Meanwhile, Elizondo said that the agreement has been positive for the two parties. "In this occasion, we have enhanced our relationship with Venezuela. This encourages us to develop different initiatives to improve infrastructure, housing and roads."

Menéndez noted that the nationalized company produced in 11 months the same amount of cement reached in 2010.

Translated by Gerardo Cárdenas