VENEZUELA will take control of the country's largest steelmaker in the second major takeover of foreign businesses in a week as President Hugo Chavez resumes his socialist drive to nationalise key industries.

Just days after Mr Chavez announced the takeover of the cement industry, his government said today that steelmaker Ternium Sidor would fall back into state hands, sending the Argentine-controlled company's shares tumbling.

Mr Chavez first threatened to take over the steel firm last year, during the takeover of oil projects and telecom companies.

He renewed his nationalisation campaign last Friday by ordering the takeover of the country's largest cement companies, which are all foreign-run. He has also threatened in the past to nationalise banks and food companies.