U.S. and other foreign investors continued to react favorably Monday to the announcement that Venezuela will pay Cemex $600 million to compensate for seizing Cemex’s Venezuelan operations.
Venezuelan President Hugo Chavez decided in 2008 to nationalize his country’s cement business, of which Cemex had the biggest market share at around 50 percent.
Compensation is to come in the form of $240 million (U.S. dollars) in cash and $360 million in securities issued by Petróleos de Venezuela S.A.
Cemex officials thanked Chavez and Mexican President Felipe Calderón for their support of the deal.
Share prices have risen about 20 percent on the New York Stock Exchange since the announcement was made Thursday.
Cemex has two series of common stock. Its Class A stock can be owned only by Mexican nationals and may never dip below 64 percent of all outstanding voting stock. Class B shares may be owned by anyone. Both classes have the same voting rights.
Headquartered in Monterrey, Mexico, Cemex is the world’s largest building materials supplier and the No. 3 cement producer with production facilities in 50 countries.
Cemex holds two 10-year back-to-back federal permits to mine 56 million tons of sand and gravel in the Soledad Canyon area of the Santa Clarita Valley. The company has not yet commenced mining operations locally.
Like this:
Like Loading...
Related
REAL NAMES ONLY: All posters must use their real individual or business name. This applies equally to Twitter account holders who use a nickname.
0 Comments
You can be the first one to leave a comment.