Cemex losing out in cement fight with Chavez

VENEZUELA: Cemex could get little more than petty cash for its Venezuelan assets seized by President Hugo Chavez, but analysts see that having a limited impact on the Mexican cement maker’s stock price.

Venezuela on Monday took over plants owned by Cemex, the world’s No. 3 cement maker, as part of Chavez’s bid to run key industries in the South American oil-producing nation. Cemex, unlike European rivals Holcim and Lafarge, did not strike an agreement to sell to the Chavez government and now faces a growing possibility of losing all, or most, of its investment after 14 years spent in Venezuela.

Cemex has had a rocky relationship with Chavez, who is struggling to meet home-building targets and accuses the Monterrey-based company of exporting too much local output. But even in a worst-case scenario where Cemex gets a small payout, analysts see that having little effect on its shares.

Monterrey, Wednesday, Reuters