Cereal maker Kellogg Co. said it is discontinuing operations in Venezuela and that the country's government has seized control of the company's manufacturing facility in Maracay.
Kellogg said May 15 in an emailed statement that the "current economic and social deterioration in the country" prompted the move.
The company said it has settled all its contractual obligations with employees, suppliers and customers in the country. It said it has terminated its license agreement for the use of its brands and characters in the country.
Kellogg said the Venezuelan government has seized control of its manufacturing plant.
"These actions have been taken without the consent or involvement of Kellogg Venezuela or Kellogg Company. As such, Kellogg is not responsible for the unauthorized use of the commercial names and brands that are the property of the company and will exercise legal actions available as necessary," Kellogg said in the statement.
The Michigan-based company, which deconsolidated its Venezuela business from the company's results in December 2016, said it would like to return to the oil-rich nation in the future.
Kellogg is the latest company to end operations in the country, following others such as Clorox Co., Kimberly-Clark Corp. and General Motors Co., Reuters reported May 15.
Venezuelan President Nicolas Maduro's government does not allow companies to increase prices to keep up with hyperinflation, the Reuters report added.
On May 2, the International Monetary Fund issued a "declaration of censure" against Venezuela for the country's failure to publish economic data and its failure to implement remedial measures.
Maduro criticized the U.S.-based cereal maker for pulling out of the country, calling the move "unconstitutional" and vowing to hand over the company's factory to workers, according to Reuters.
