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Post by livinginmedellin on Mar 23, 2016 11:26:32 GMT -5
General Mills, the company behind Cheerios and Häagen-Dazs ice cream, has exited its operations in Venezuela. The US company said it has sold its subsidiary in the country to an unnamed third party in a move that will leave it with a $35m charge. General Mills’s exit follows that of bleach maker Clorox, which took a charge of more than $600m to end its operations there. Venezuela’s controls and the government’s frequently shifting currency policy has proved a headache for US multinationals, who have struggled to take cash out of the country. See: www.ft.com/fastft/2016/03/23/cheerios-maker-general-mills-exits-venezuela/US companies in Venezuela have been racking up big losses: Colgate-Palmolive swings to a loss on Venezuelan-related charges, the company had to take a $1.1 billion charge due to its Venezuelan operations - www.morningstar.com/news/market-watch/TDJNMW_20160129130/colgatepalmolive-swings-to-a-loss-on-venezuelanrelated-charges.html. Kelloggs is also been experiencing losses - foreign exchange turbulence could shave 10 cents off earnings per share in 2016, including 4 cents attributed to the impact of Venezuela exchange rates during the first half of the year. The company restructured its business in Venezuela last year due to the volatility. I suspect we'll see more companies exit the market in Venezuela with the economy there in a meltdown - money.cnn.com/2016/01/18/news/economy/venezuela-economy-meltdown/.
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Post by suba on Mar 24, 2016 10:46:26 GMT -5
I only see civil war there unfortunately.
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Post by livinginmedellin on Mar 24, 2016 18:02:27 GMT -5
I only see civil war there unfortunately. Yes some type of ugly and violent mess in Venezuela is fairly likely, unless oil prices recover substantially. There has already been over the past few years a series of protests, political demonstrations, and civil insurrection in Venezuela due to the country's high levels of urban violence, inflation, and chronic shortages of basic goods. IMHO any foreign company doing business in Venezuela should be looking to get out of that mess.
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Post by scumbuster on Mar 25, 2016 9:46:47 GMT -5
Maduro isn't going anywhere as long as he has the military backing. And he has been taking care of them.
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Post by colombiana on Mar 26, 2016 15:54:13 GMT -5
Perhaps there will be a US-backed coup?
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Post by billyb on Mar 26, 2016 22:15:29 GMT -5
That's the last thing the US wants to be involved in. Those days are over. Not that I wouldn't love to see that whole cabal overthrown and in jail, or worse. But like suba says, it won't end well. Too many people, specifically military, are sacking at the public teat and will not give it up willingly.
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