Read the text below.
The Venezuelan / ven.əˈzweɪ.lən / government has seized control of Kellogg Company’s operations in the country.
Last May, the US-based food-manufacturing company announced the withdrawal of its cereal operations from Venezuela /ˌven.əˈzweɪ.lə / because of the country’s heightening economic crisis. Raw material shortage and the government’s control over product prices in the country are the cited reasons behind this crisis.
Venezuelan President Nicolas Maduro claimed that the plant’s shutdown was unlawful. Although President Maduro did not provide further explanation, the country has begun taking legal action against the company’s executives. The government also left the company in the hands of the workers in order to continue producing for the citizens.
In response to this, Kellogg Company threatened the country’s government with a possible lawsuit. It asserted that the government is producing and selling its products without its consent.
Nevertheless, the company is still considering to revive its operations in Venezuela if the condition in the country improves in the future.
This is not the first time that the Venezuelan government took over the operations of a US-based company. In 2014, the government temporarily seized control of two manufacturing plants owned by The Clorox Company, a cleaning product manufacturer. Earlier in the same year, the company halted its operations in the country to avoid foreseen significant losses resulting from the country’s economic situation and supply problems.
President Maduro justified the government’s action, saying that it is only natural for the working class to undertake the operations of an abandoned business.