Firms cautious as Venezuela nationalizes cement industry

0 Comments | AFP, April, 2008

CARACAS (AFP) — Foreign-owned cement companies operating in Venezuela reacted with caution Friday to President Hugo Chavez's announcement that their assets would be nationalized.

Mexican-owned Cemex, Switzerland's Holcim and French-owned Lafarge are all affected by the order.

The Venezuelan president made the announcement in a cabinet meeting late Thursday. Chavez said that the companies would be compensated.

The declaration sparked immediate concern in Mexico, with the government summoning the Venezuelan ambassador for an explanation.

"The ministry of foreign affairs has got in touch with the Venezuelan government to gain more insight into the declaration of President Hugo Chavez," a statement said.

Separately Mexican Finance Minister...