Monterrey, Mexico-based Cemex, one of the world’s largest producers of ready-mix concrete and other cement building products, has threatened arbitration in an ongoing fight against Venezuela’s plan to nationalize its cement production operations.
In a statement, the manufacturer said it will submit a complaint seeking international arbitration with the International Center for Settlement of Investment Disputes, following the Venezuelan Government's seizure of Cemex’s business unit in that country.
Venezuela approved a "forced acquisition" of the shares and property of the Cemex local unit, according to a report by Bloomberg, a day after the country’s national guard, oil workers and Energy and Oil Minister Rafael Ramirez seized Cemex’s facilities.
“Cemex believes the confiscation and subsequent start of the expropriation process is a flagrant violation of the Constitution, Law of Expropriation and other laws of Venezuela,” Cemex said in a statement.
Cemex added that it would not accept a compensation proposal offered by the government of Venezuela as part of its ongoing process to nationalize its assets. “Cemex believes that the offer of $650 million significantly undervalues its business in Venezuela,” the company said.
Cemex serves customers in more than 50 countries worldwide.