CEMEX, S.A.B. de C.V. (NYSE: CX) announced today that it will submit a
complaint seeking international arbitration before the International
Center for Settlement of Investment Disputes following the Venezuelan
Government’s confiscation of assets,
deprivation of rights of CEMEX Venezuela as well as the initiation of
the expropriation of CEMEX’s business.
CEMEX believes the confiscation and subsequent start of the
expropriation process is a flagrant violation of the Constitution, Law
of Expropriation and other laws of Venezuela. CEMEX also believes the
Venezuelan Government’s actions highlight a
lack of respect for the principles of international law and the treaties
relating to reciprocal protection of investments which forbid the
occupation of goods and deprivation of rights without fair and effective
compensation and without an expropriation procedure.
CEMEX has always been respectful of legally based sovereign decisions,
as well as the legal and regulatory frameworks that exist within the
countries in which it maintains an operational presence, but it has an
obligation to its shareholders to defend its business interests.
After careful analysis, CEMEX determined that it could not accept the
compensation proposal offered by the Government of Venezuela as part of
its ongoing process to nationalize its assets. CEMEX believes that the
offer of US$650 million significantly undervalues its business in
Venezuela.
In addition, the offer presented to CEMEX is lower, proportionally, than
the ones offered to the European cement companies, considering value per
ton of installed capacity and EBITDA multiple.
CEMEX has always been open to engage in dialogue with the Government of
Venezuela and intends to continue to seek an equitable resolution for
all parties.
CEMEX is a growing global building materials company that provides high
quality products and reliable service to customers and communities in
more than 50 countries throughout the world. CEMEX has a rich history of
improving the well-being of those it serves through its efforts to
pursue innovative industry solutions and efficiency advancements and to
promote a sustainable future. For more information, visit www.cemex.com.
This press release contains forward-looking statements and
information that are necessarily subject to risks, uncertainties and
assumptions. Many factors could cause the actual results, performance or
achievements of CEMEX to be materially different from those expressed or
implied in this release, including, among others, changes in general
economic, political, governmental and business conditions globally and
in the countries in which CEMEX does business, changes in interest
rates, changes in inflation rates, changes in exchange rates, the level
of construction generally, changes in cement demand and prices, changes
in raw material and energy prices, weather conditions, changes in
business strategy and various other factors. Should one or more of these
risks or uncertainties materialize, or should underlying assumptions
prove incorrect, actual results may vary materially from those described
herein. CEMEX assumes no obligation to update or correct the information
contained in this press release.
For CEMEX, S.A.B. de C.V.
Media Relations
Jorge Pérez,
(52-81) 8888-4334
or
Investor Relations
Eduardo Rendón,
(52-81) 8888-4256
or
Analyst Relations
Luis Garza,
(52-81) 8888-4136
