(Bloomberg) -- Wal-Mart de México SAB executives criticized a long-running antitrust probe into the retailer’s alleged monopolistic practices, adding that a resolution is expected by the end of this month.
In a rare press conference Tuesday, newly appointed Chief Executive Officer Ignacio Caride said the investigation at the agency, known as Cofece, lacked transparency. To illustrate the point, he said that the company received a version of the agency’s report in which 201 of 562 pages were redacted. The findings, produced by Cofece’s investigations unit, were presented to the agency’s board to inform a final decision.
Walmex, as the company is known, is one of Mexico’s biggest employers. Its staff of around 200,000 workers, coupled with revenue that totaled nearly 890 billion pesos ($45.9 billion) in 2023, make the company a major player in Mexico’s economy and business landscape. The company announced Cofece’s probe in late 2020 and has spent the last four years responding to inquiries for information from the agency.
Alberto Sepúlveda, who oversees legal affairs for Walmex, said the probe was flawed and Walmex was running up against an “activist” watchdog that didn’t allow the company to prepare an “adequate defense.”
Cofece has interviewed suppliers and other retailers to determine whether Walmex abused its positions in areas such as wholesale supply, distribution and retail operations.
Walmex said Cofece interviewed only 20 out of 33,000 of its suppliers, and didn’t factor in competition from other rivals such as the ubiquitous convenience store chain OXXO, owned by Fomento Economico Mexicano SAB de CV.
Sepúlveda said that three out of seven Cofece commissioners have recused themselves from the case, citing conflicts of interest. Walmex is attempting to have a fourth commissioner recused, he added. If successful, Cofece’s board wouldn’t be able to rule on the case with only three commissioners, he said.
A Cofece press representative declined to comment on Walmex’s statements.
Cofece is one of several government watchdogs that are expected to disappear under an initiative by former President Andrés Manuel López Obrador. He deemed these agencies too expensive to maintain and accused them of serving private interests.
Walmex shares were little changed in Mexico City trading on Wednesday. The stock has dropped about 20% so far this year, about double the decline of the nation’s benchmark equity index.
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