Venezuela's Chavez says ready for Cemex fight
CARACAS, Aug 21 (Reuters) - Venezuelan President Hugo Chavez vowed on Thursday to defeat Mexican cement giant Cemex in an arbitration suit over the nationalization of its local unit and charged the company with polluting and evading taxes.
Chavez took over plants owned by Cemex (CX.N)(CMXCPO.MX), the world's No. 3 cement maker, on Monday as part a renewed drive to instill socialism in the OPEC nation. Cemex called the move a violation of its rights and filed for arbitration.
"We are not afraid ... let's go to the battle," Chavez said during a state television broadcast. "We'll be reviewing the situation closely, the environmental damage, debts to the workers ... the tax evasion."
The socialist leader described the company as "disrespectful" practitioners of "savage capitalism."
Cemex, which was looking for $1.3 billion in compensation, said Venezuela offered $650 million for its operations.
Analysts think the impact on the company will be limited because the Venezuelan operations represent only an estimated 4 percent of Cemex's consolidated earnings before interest, tax, depreciation and amortization.
European cement makers Holcim (HOLN.VX) and Lafarge (LAFP.PA) were able to negotiate agreements in the nationalization and stay on as minority partners.
Venezuela faces arbitration proceedings by oil giants Exxon Mobil (XOM.N) and ConocoPhillips (COP.N) over Chavez's 2007 takeover of multibillion dollar oil projects. (Reporting by Brian Ellsworth, editing by Richard Chang)
