Replies to post #550 on The Rising Influence of Rising Affluence

[DewDiligence]

How long until a coup d'état in Venezuela?

http://online.wsj.com/article/SB10001424052748703569004575009420323919964.html

›Venezuela Nationalizes French Retail Chain

JANUARY 17, 2010, 4:27 P.M. ET
By DARCY CROWE

CARACAS -- President Hugo Chavez ordered Sunday the seizure of a French-owned retail chain on accusations that it raised prices after Venezuela devalued the currency by half.

"Until when are we going to allow this to happen?" Mr. Chavez asked during his Sunday television program in reference to the alleged price increase by Almacenes Exito, headquartered in Colombia and controlled by French retailer Casino Guichard-Perrachon S.A.

The Venezuelan leader said that a new law could be needed to carry out the nationalization. "I'm waiting for the new law to begin the expropriation process," he said. "There's no going back," he added.

Almacenes Exito saw some of its stores closed this week by government authorities on accusations that it was increasing prices regardless of Mr. Chavez's threats to retailers to freeze prices after he devalued the currency to 4.3 bolivars per dollar from the previous rate of 2.15 bolivars.

Almacenes Exito, which also runs a large retail chain in Colombia, controls six hypermarkets and around 32 supermarkets in Venezuela. It was not possible to reach the company for comment.

Laurent Zecri, vice president of Finance for Almacenes Exito in Colombia, said last week, before the nationalization was announced, that the stores had not increased their prices.

Separately, Mr. Chavez also ordered the nationalization of a large shopping-mall recently built in a downtown district in Caracas. The stores controlled by Exito and the shopping mall will be used to build up Comerso, a new government-run retail chain which seeks to sell its products at "socialist" prices, according to the president.

During his 11 years in power Mr. Chavez has nationalized large swaths of the Venezuelan economy, including a Spanish-owned bank and an Argentine-controlled steel-mill.

In some cases the government has reached a compensation agreement with the owners, while other companies, including Cemex SA and Exxon Mobil , are mired in international arbitration proceedings to secure payment for their nationalized assets.‹