Mexico's Cemex keen to stay in Venezuela - paper

MONTERREY, Mexico, June 27 (Reuters) - Mexico's Cemex (CX.N: Quote, Profile, Research) (CMXCPO.MX: Quote, Profile, Research), the world's No. 3 cement maker, is eager to stay in Venezuela despite the pending nationalization of its local assets, the company's chief executive told a newspaper on Friday.

Venezuelan President Hugo Chavez said earlier this year he would take over the Venezuelan units of Cemex, Switzerland's Holcim (HOLN.VX: Quote, Profile, Research) and France's Lafarge (LAFP.PA: Quote, Profile, Research), taking at least 60 percent ownership.

Chavez's government says the cement companies can negotiate over continuing as minority partners and seek compensation for the loss of their assets.

"Cemex ... will continue to contribute to Venezuela's prosperity. Our intention is ... to collaborate with the Venezuelans," Cemex's Chief Executive Lorenzo Zambrano told La Jornada newspaper. "We are willing to continue working in that country," he added.

Venezuela said this month that once negotiations are over with Cemex, Holcim and Lafarge, the state will complete the transfer of ownership and operations by the end of the year.

Some analysts see Cemex withdrawing completely from Venezuela, judging by Cemex's past strategies of seeking full control of the companies it operates.

Monterrey-based Cemex, which operates in more than 50 countries, declined to comment on Friday but has said it is seeking a "mutually acceptable" solution.

Being forced out of Venezuela would not deeply affect Cemex's overall profitability, as the Venezuela operations only accounted for 4 percent of the group's earnings before interest, tax, depreciation and amortization (EBITDA) in 2007.

But it is still enjoying double-digit sales growth in the country and analysts say Cemex could receive up to $800 million for its assets based on its market capitalization, depending on what the Chavez government offers.

Chavez, a socialist ally of Cuba who often complains foreign companies plunder his OPEC nation's resources, has nationalized swathes of the economy over the last two years. (Reporting by Robin Emmott; Editing by Tim Dobbyn)