Holcim starts Venezuelan proceedings

Almost a year after Venezuela nationalised the cement industry, Holcim has said that it is initiating arbitration proceedings against the government to settle claims for compensation. The company has said that an agreement has not yet been reached and has started the arbitration process to finalise the deal.
On 3 April 2008, the President of Venezuela publicly announced that the Government would nationalise the cement industry in Venezuela. On 27 May 2008, the President issued a Decree nationalising Holcim Venezuela and the interests of Lafarge and Cemex in the country.
The Nationalisation Decree became effective on 18 June 2008 and Holcim chose to negotiate compensation for its nationalised assets. Under the plan Holcim was to retain 15% of the shares in Venezuela Holcim but in October the Venezuelan Government stopped communication and no agreement on share price has been reached.
Holcim has said in a statement that Venezuela has breached its obligations to Holcim, under the Agreement between the Republic of Venezuela and the Swiss Confederation on the Reciprocal Promotion and Protection of Investments, dated November 18, 1993, by failing to pay the compensation required under those treaties for the expropriated assets.
Holcim has said that it hopes to reach agreement on a fair market price for the business at the time of nationalisation but as yet Venezuela has not responded.