Venezuelan Vice President Ramon Carrizales said, in contrast, Holcim from Switzerland and Lafarge from France had agreed to remain as a minority shareholder in their respective cement plants.

Cemex's expropriation was due to a failure in negotiations to make the company give a majority shareholding to the government, Carrizales said.

A government deadline expired at midnight yesterday for the three foreign cement companies to reach an agreement giving Venezuela a 60 percent controlling share of each.

Carrizales said the government will fully own the Cemex plant and obtain 89 percent controlling shares of the French company's plant and 85 percent of the Swiss firm's.

He said the government had agreed to pay 257 million US dollars to Lafarge and 582 million dollars to Holcim for their shares.

Managers from Lafarge and Holcim have signed agreements for the transfer of the assets to the government.

Cement in Venezuela was the most expensive in the world, because the price was controlled by the three companies, Venezuelan President Hugo Chavez claimed during a TV speech.

Chavez said the total or partial nationalization of the three companies will reduce cement prices and construction costs in the country.

Chavez also has plans to totally or partially nationalize other strategic economic sectors like hydrocarbons, electricity and telecommunications.