Venezuela to expropriate coffee company, in negotiations to buy majority stake in another
Associated Press
11/10/09 9:40 AM PST
CARACAS, VENEZUELA — Venezuela plans to expropriate a large coffee producer and is negotiating to buy a majority stake in another, potentially allowing the government to control 80 percent of the domestic market.
Food Minister Felix Osorio says the government has extended its occupation of the companies' processing plants for three months while finalizing arrangements to assume control.
He said Monday that Venezuela is targeting Fama de America for expropriation and hopes to purchase a majority stake in Cafe Madrid.
In August, the government accused the two of acting as monopolies and illegally flouting price controls by smuggling coffee to Colombia. The companies denied it.
It is unclear how much the government may pay to compensate them.
