MONTERREY, Mexico (AFP)--Mexico urged Venezuela to continue talks with Mexican cement giant Cemex (CX) Tuesday, hours after Venezuelan President Hugo Chavez nationalized the company's plants in Venezuela.

"The Mexican government has formally informed Venezuela of its support for the company's request to continue negotiations," Mexico's foreign ministry said in a statement.

Cemex earlier acknowledged the Venezuelan nationalization, but made no comment on the move announced by Chavez after failed talks.

Cemex can count on Mexico's support for talks "based on the principles of dialogue, nondiscrimination, compromise and openess," the ministry statement said.

The government aims to "watch over Mexican business interests" and ensure that the process carried out by the Venezuelan authorities remains within the law, it added.

Chavez had set a midnight Monday deadline for Venezuela's three dominant, foreign-owned cement companies - Mexican, French and Swiss - to agree to sell Caracas a majority shareholding of each, but Cemex and Caracas were unable to reach a deal.

Reports said that Cemex had been seeking more than $1.3 billion for its activities in Venezuela, a price Venezuela considered too high.

"According to a press release issued by Petroleos de Venezuela S.A. (PDVSA), PDVSA will proceed to take operational control of the plants of CEMEX Venezuela, " Cemex said in a statement sent to the Mexican stock exchange and published on its Web site Tuesday.

Chavez was to sign the nationalization decree for the Cemex Venezuela facilities Tuesday, after which accountants will set a value on the business and seek agreement on that with the Mexican parent.

If the two sides can't reach agreement in 60 days, the case will go to arbitration.

Chavez's move was the latest in a series of nationalizations of major foreign- controlled businesses, including companies in the telecommunications, oil and steel industries.

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  (END) Dow Jones Newswires
  08-19-08 2012ET
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