ZURICH, August 19, 2008 (AFP) - Swiss cement group Holcim on Tuesday said it had signed an agreement to sell 85 percent of Holcim Venezuela to the Venezuelan authorities.

The remaining stake of 15 percent would continue to be held by Holcim, said the world's second biggest cement-maker.

The move came after Venezuala's President Hugo Chavez announced in April that he would nationalise the entire cement industry in the country.

In June, he issued a decree giving cement companies 60 days to negotiate handover agreements.

Holcim said a final contract would be prepared and signed in the coming weeks.

'In the negotiations, Holcim was determined to safeguard the interests of Holcim and its local employees in accordance with the bilateral investment protection agreements in place between Switzerland and Venezuela,' said the cement group in a statement.

Holcim Venezuela posted net sales of about 200 million dollars in 2007, making up about one percent of the group's overall turnover.