MEXICO CITY, (Reuters) – Mexico’s antitrust watchdog Cofece ruled that the local unit of U.S.-based retail giant Walmart WMT.N, known as Walmex, engaged in monopolistic behavior related to its suppliers, the company said in a statement yesterday.
Walmex said it has been ordered to pay a fine of just over 93 million pesos, or about $4.6 million, while stressing it believes the regulator’s analysis is incorrect and that it will appeal its ruling.
“Walmex is disappointed by this decision but will comply with Cofece’s resolution while challenging the decision,” the company said, adding that the ruling by Cofece’s governing body was not unanimous.
The company said it believes Cofece’s analysis, delivered in a 900-page ruling, “committed errors in the application of the law.”
Markets reacted positively with Walmex WALMEX.MX shares on Mexico’s main stock exchange climbing over 5% on Friday, as analysts noted the penalty could have been worse for the company.
“Our initial reaction is that the determination takes off the table the more concerning scenarios of mandating divestments or levying large fines,” said Rodolfo Ramos, analyst at Banco Bradesco.
Actinver equity research said the fine is less than 0.2% of the net profit it has forecasted Walmex will record in the 2024 financial year.
“The low scale of the fine and no potential divestments needed, lead to a neutral-to-positive view,” Actinver analyst Antonio Hernandez said.
Cofece did not immediately respond to a request for comment.