Source: Cemex S.A.B. de C.V., Monterrey, Mexico
Cemex reported recently that it has reached an agreement, through its Dutch subsidiaries, with the Government of the Bolivarian Republic of Venezuela and its public entity Corporación Socialista del Cemento, S.A., contemplating the payment to Cemex of US$600 million as compensation for the nationalization of Cemex Venezuela, S.A.C.A. Additionally, the agreement contemplates the cancellation of US$154 million of accounts payable by Cemex subsidiaries to Cemex Venezuela.
Compensation will be paid US$240 million in cash and US$360 million in various negotiable securities issued by Petróleos de Venezuela, S.A., the Venezuelan state oil company. The Government of the Bolivarian Republic of Venezuela, Corporación Socialista del Cemento, S.A., and Cemex are pleased with the resolution of this dispute and say they look forward to further the relationship between Venezuela and Mexico. According to a statement released by Cemex, the company is grateful for the support received from the presidents and chancellors of Mexico and Venezuela in this matter.
In April 2008, Venezuela decided to nationalize the cement industry, affecting Cemex, Lafarge SA of France, and Holcim Ltd of Switzerland, the three giants in the industry.