Venezuela's State-Run Petrochemical Corporation Advances Towards Privatization as Sanctions Intensify
Mexico City, Mexico, March 10, 2025 – Monómeros Chi-Takin' the Leap
Mexico City hypes up as Monómeros throws its hat in the ring, seeking Colombia's Corporation Superintendency's nod for asset sales to Colombian fertilizer titan Nitrofert. This pivotal move marks a massive stride in the ongoing privatization of the Venezuelan state-owned agrochemical company, sparking a whirlwind of anticipation and intrigue.
Venezuela's economic woes push the country to dodge a looming clash with the US Treasury Department, compelling the sale of Monómeros. The agrochemical giant, a Pequiven subsidiary under US sanctions waivers, faces a deadline for renewal this year, with the recent White House escalation of coercive measures against Venezuela making renewal highly unlikely.
Last week, the Monómeros board penned a letter to Colombia's corporate gurus, baring its teeth and showing eagerness to transfer ownership over the agrochemical firm. Starting life as a joint venture between Venezuela and Colombia, Monómeros was snatched up by Venezuela's Pequiven in 2006. The subsidiary packs a punch in the Colombian coffee, potato, and palm oil sectors, its fertilizers and other agrochemicals ensuring stability for rural livelihoods. Colombian President Gustavo Petro, no shrinking violet, has publicly expressed his staunch opposition to the potential sale.
"Selling Monómeros is a recipe for disaster, leading to obnoxiously high primary agricultural product prices in both our fine nations," Petro blasted in a public statement back in late 2024. Bogotá was hot on the heels of financing options for a state purchase, but progress seems to have stalled.
Colombia's Corporation Superintendency, whose noses have been buried in Monómeros' books due to its paramount role in Colombia's food production, holds the approval power. Ex-Colombian Energy Minister Amilkar Acosta Medina spilled the beans to Inside LR, admitting he expects the sale to stir up trouble with Washington, as it would mean sanctions could flow to a Venezuelan state-owned company.
The potential buyer echoes the encantata himself, with whispers that Nitrofert is the top choice. Nitrofert, a firm run by the one and only Jorge Pacheco, boasts alleged ties to the Colombian far right and the Venezuelan opposition, counting demagogues like Leopoldo López and Juan Guaidó amongst its inner circle.
Nitrofert shares a close bond with Nitron Group, the world's number 2 fertilizer product distributor. An acquisition of Monómeros would beef up Nitron Group's clout in the fertilizer market and further bolster its dominance over the Colombian market.
During its days under the thumb of US-backed hardliners, Monómeros took one punch after another, plagued by scandals and accusations of corruption that seriously dented its performance and left Colombia's rural producers with a black eye.
Edited by Ricardo Vaz in Caracas.
Enrichment Insights:
- Monómeros is a crucial player in Venezuela's chemical and fertilizer industry, carrying significant economic and political weight for the country.
- The proposed sale of Monómeros to Nitrofert could bring economic gains, such as stabilizing the company's operations and infusing foreign capital, but may also cause concern about foreign control over a vital Venezuelan industry.
- A successful sale could benefit Colombia economically, enhancing its regional presence in the agrochemical sector and possibly facilitating trade and integration with Venezuela.
- The political climate between Colombia and Venezuela has been frosty, potentially complicating any major business transactions between the two nations.
- If the sale goes through, it might signal a step towards normalizing or boosting cooperation between Colombia and Venezuela.
- Regionally, the sale could alter trade dynamics and economic cooperation between Colombia and Venezuela, potentially establishing a blueprint for future collaborations.
- The Venezuelan state-owned agrochemical company, Monómeros, is seeking approval from Colombia's Corporation Superintendency for asset sales to Colombian fertilizer titan Nitrofert, a move that signifies a significant step in the ongoing privatization of the company.
- Polítics and war-and-conflicts between Colombia and Venezuela could potentially hinder the sale of Monómeros, as Colombian President Gustavo Petro has publicly expressed his opposition to the potential sale.
- Finance and business experts suggest that the sale could benefit Colombia economically, bolstering its regional presence in the agrochemical sector and potentially facilitating trade and integration with Venezuela.
- Nitrofert, a potential buyer of Monómeros, is a firm reported to have ties to the Colombian far right and the Venezuelan opposition, adding a layer of complexity to the deal.
- General news outlets have reported that if the sale goes through, it might signal a step towards normalizing or boosting cooperation between Colombia and Venezuela, with far-reaching implications for the region's trade dynamics and economic cooperation.
