Caracas:  President Hugo Chavez's nationalisation of three foreign-owned cement businesses took effect today.

The nationalisation of the companies belonging to Mexico's Cemex SAB, France s Lafarge SA and Switzerland's Holcim Ltd, announced in April, was published in the Official Gazette.

The government is to have shares of at least 60 per cent in Cemex Venezuela, Holcim Venezuela CA and Lafarge s Fabrica Nacional de Cementos.

But officials have said that the current owners will be allowed to keep minority shares and it is talking with the companies about terms of the nationalisation.

Chavez assured today that they would be compensated for their losses: "We are going to pay the investors that were here."

Speaking at an event with Paraguayan President-elect Fernando Lugo, Chavez also suggested that Venezuela should build a joint cement company with Paraguay and Iran.

Cemex SAB spokesman Jorge Perez said his company was not making any comments about the announcement.

When he announced the nationalisation, Chavez said the government could not permit businesses to keep exporting raw materials while Venezuela needs cement to help confront a housing shortage.

Source : PTI