Venezuela in Talks to Buy Japanese Stake in CVG Venalum

Venezuela’s government started talks to acquire a 20 percent stake in state aluminum producer CVG Venalum from six Japanese companies, the Ministry of Basic Industries said today in a statement.

The government is seeking to buy the stake from Showa Denko KK (4004), Kobe Steel Ltd. (5406), Marubeni Corp. (8002), Sumitomo Chemical Co., Mitsubishi Materials Corp. (5711) and Mitsubishi Aluminum Co., the ministry said.

State mining company Corporacion Venezolana de Guayana, which is known as CVG, currently has an 80 percent stake in Venalum, according to its website.

Venezuela’s government expects to have a formal negotiating committee set up in August and aims to have an agreement in place within four months, the ministry said. Kobe Steel on May 23 said it reached an agreement to transfer all of its shares in Comsigua, a Venezuelan producer of hot briquetted iron that was nationalized in 2009, to CVG.

To contact the reporter on this story: Nathan Crooks in Santiago at ncrooks@bloomberg.net;

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.