Mexican cement maker Cemex (NYSE: CX) is hoping to reach an agreement with the Venezuelan government regarding the nationalization of its local subsidiary Cemex Caracas in the near future.
Negotiations to reach an amicable settlement have made "constructive progress," Cemex said in a release, without giving an estimated timeframe for when the talks will end.
The agreement would make the arbitration process with the World Bank's International Centre for the Settlement of Investment Disputes (ICSID) unnecessary. The court recently held that it had jurisdiction over the case, a ruling Venezuelan authorities have disputed.
Cemex filed the ICSID suit at end-2008 after Venezuela seized the local firm in August of the same year, but said it was open to negotiating a settlement.
The firm was demanding US$1.3bn in compensation, a sum which was considered too steep by President Hugo Chavez, who offered half that amount, according to previous reports.