Venezuela: We'll pay 40 pct for Lafarge branches

CARACAS, Venezuela -- President Hugo Chavez's government said Wednesday it will immediately pay cement maker Lafarge SA 40 percent of the agreed-upon purchase price for its Venezuelan subsidiaries nationalized last year.

The government will pay Lafarge the money, which amounts to $118.5 million, within the next five days, Infrastructure Minister Diosdado Cabello said.

Officials at Lafarge's headquarters in Paris could not be reached for comment.

Cabello said in July that Venezuela had agreed to pay Lafarge and a second cement maker, Holcim Ltd., 40 percent of the purchase price of each company's subsidiaries - a total of $378 million - and that the rest would be paid over four years, without interest.

Lafarge said at the time that it was still in talks with Venezuela and had no indication of when it would be paid. Holcim, based in Zurich, Switzerland, also denied reaching a deal with the government.

Chavez announced the nationalizations of three cement makers last year: Holcim, Lafarge and Mexico's Cemex ( CX - news - people ) SAB. His government has also recently nationalized major companies in the metals, oil and electricity sectors as it aims to build a socialist economy.

Venezuela agreed in August 2008 to pay Lafarge $267 million for an 89 percent stake in its company, and Holcim $552 million for an 85 percent share.

That same month, Cemex filed for World Bank arbitration in protest. Holcim did the same before the Washington-based International Center for Settlement of Investment Disputes seven months later.

Cabello said Wednesday that the government is still in talks with Holcim and that the "doors are open" for a possible agreement with Cemex.

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