Walmex Faces Antitrust Fine: Appeals Cofece Ruling Amid Share Surge

Mexico's antitrust body, Cofece, fined Walmex for monopolistic practices involving suppliers. Walmex plans to appeal, believing the analysis flawed. Despite the ruling, Walmex shares rose over 4%. This resolution stems from a lengthy investigation, with Cofece facing scrutiny amid governmental changes on competition oversight.

Mexico's antitrust watchdog, Cofece, has ruled against Walmex, the local arm of U.S.-based retail giant Walmart, citing monopolistic behavior with suppliers. In a statement, Walmex disclosed a fine of just over 93 million pesos, or about $4.6 million, noting its intention to appeal the decision.

The company expressed disappointment with the ruling, yet confirmed compliance. Walmex criticized the analysis, given by Cofece in a detailed 900-page ruling, as flawed. The decision was not unanimous, highlighting potential divisions within Cofece's governing body.

Markets reacted positively, with Walmex shares surging over 4% on the Mexican exchange. According to Rodolfo Ramos, an analyst at Banco Bradesco, the outcome mitigated fears of divestment or major financial penalties. Cofece's recent probe into the major retailer lasted over four years, but Walmex maintains its operations were lawful.

(With inputs from agencies.)