June 19 (Bloomberg) -- Venezuelan President Hugo Chavez formally took control of the cement industry today by decree and gave three foreign companies 60 days to negotiate a fair price for their assets.

The government will take at least a 60 percent stake in the Venezuelan subsidiaries of Mexico-based Cemex SAB, Switzerland- based Holcim Ltd. and France-based Lafarge SA, according to the decree published in today's Official Gazette. Chavez announced plans to take over the cement industry in April.

``We're nationalizing the cement companies here,'' Chavez said today on state television. ``The decree has been signed, and we're going to pay the shareholders and foreigners that were operating here.''

Chavez is using a windfall from oil exports to increase state control of the economy. Since the beginning of 2007, he has nationalized four crude oil ventures as well as the country's biggest telephone company and electricity provider.

The government will appoint a ``transition committee'' within the next week to begin the process of taking control of the cement companies, which should be complete by year-end, according to the decree.

Companies have 60 days to negotiate a ``fair'' price to sell their local assets to the government. Should they fail to reach an agreement, the state will start expropriating shares, the statement said.

Both Cemex Venezuela SACA and the Lafarge unit trade on the local Caracas stock exchange.

On June 10, Monterrey, Mexico-based Cemex's local subsidiary, sold all of its overseas assets to the parent company for paid $355 million.

Days later Petroleos de Venezuela SA, Venezuela's state oil, which is in charge of negotiating Cemex's compensation for the takeover, said that Vencement Investments BV, the majority shareholder of Cemex Venezuela SACA, set the price and conditions for the asset sale without notifying the Venezuelan government.

To contact the reporter on this story: Matthew Walter in Caracas at mwalter4@bloomberg.net.

Last Updated: June 19, 2008 16:09 EDT