Wal-Mart de Mexico Antitrust Fine Eases Stock Overhang -- Market Talk

Dow Jones12-14

1726 ET - The $4.6 million fine imposed by Mexico's antitrust watchdog on retailer Wal-Mart de Mexico for anticompetitive practices in negotiating discounts with suppliers removes uncertainty that analysts say have been hanging over the company's share price. "We consider the amount not very significant and it removes uncertainty around the stock," analysts at Banorte say in a note, adding that they await details of remedies restricting some Walmex discount negotiations. Despite expected near-term gains in the shares, challenges remain in higher labor costs and the economic slowdown, and "we think a sustained rally should be supported by consistent growth and profitability," they add. Walmex plans to appeal the antitrust ruling. The company's shares close up 7.5% on the Mexican stock exchange. (anthony.harrup@wsj.com)

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December 13, 2024 17:26 ET (22:26 GMT)

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