Argentine steelmaker Ternium SA released an announcement Wednesday regarding the status of the nationalization process of Venezuelan steelmaker Sidor, which Ternium holds 60 percent stake in.
The company stated that though the term for the negotiation of the conditions under which all or a significant part of Ternium's stake in Sidor will be transferred to the Republic of Venezuela has expired, negotiations with the Venezuelan government are still underway.
The press release came one day after Latin American news outlets reported that the two parties had reached a final agreement under which Venezuela would pay Ternium US$1.65 billion for a 50 percent stake in Sidor, with Ternium retaining a 10 percent stake in the plant, entitling it to manage part of Sidor's marketing operations and to have a seat in Sidor's board of directors.
According to the news reports, the above terms are already agreed upon, but the country's nationalization of three cement producers this week did not leave enough time for the Sidor nationalization to be concluded before the deadline that Venezuelan President Hugo Chavez had originally set. It is believed, however, that the final agreement between the two parties is imminent.