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Walmart Facing Antitrust Panel in Mexico Over Monopoly Claims

 |  October 8, 2023

Walmart’s Mexican division, Walmex, is set to make an appearance before an antitrust panel in response to allegations of monopolistic practices pertaining to the supply and wholesale distribution of consumer goods. This development comes in the wake of a comprehensive three-year investigation conducted by Mexico’s antitrust regulator, the Federal Economic Competition Commission (Cofece).

Cofece’s probe into Walmex’s business practices has raised questions about the retail giant’s dominance in the Mexican market, specifically regarding its influence on consumer goods supply chains. The investigation has centered on whether Walmex may have engaged in anti-competitive behavior that could potentially harm competition and consumers alike.

Read more: Energizer, Walmart Face Antitrust Class Action For Battery Price Hikes

In light of these allegations, Walmex has been granted a 45-day window to present its arguments and evidence before the antitrust panel. The company has expressed its commitment to cooperating fully with the proceedings and defending its business practices vigorously. In a statement, Walmex asserted that it has consistently operated in accordance with applicable laws, emphasizing its dedication to providing customers with the best prices and product quality.

Walmex is a prominent player in the Mexican retail sector, with an extensive network of stores and a significant presence in the supply chain. The outcome of this antitrust investigation will likely have far-reaching implications for the competitive landscape of the Mexican retail industry.

Cofece’s investigation has drawn considerable attention from stakeholders, including competitors and consumer advocacy groups, who are keenly interested in ensuring a level playing field in the market. The panel’s decision, following Walmex’s presentation of its case, will be closely monitored as it could impact not only the company’s operations but also the broader retail landscape in Mexico.

Source: Retail Wire

Power Industry Shake-Up: Constellation Energy to Buy Calpine in Massive $26.6B Deal Power Industry Shake-Up: Constellation Energy to Buy Calpine in Massive $26.6B Deal

Power Industry Shake-Up: Constellation Energy to Buy Calpine in Massive $26.6B Deal

 |  January 10, 2025

US-based nuclear power giant Constellation Energy has announced a landmark deal to acquire privately-held natural gas and geothermal company Calpine Corp for $16.4 billion in a move that reshapes the American energy landscape. The acquisition, one of the largest in the history of the U.S. power sector, comes at a time of surging electricity demand driven by the rapid expansion of energy-intensive technologies like artificial intelligence and the ongoing electrification of transportation and buildings.

According to Yahoo the agreement will transform Constellation into the largest independent power provider in the United States, with a diverse portfolio spanning nuclear, natural gas, and geothermal energy sources. The deal, which also includes Calpine’s debt, values the transaction at $26.6 billion.

Following the announcement, Constellation’s stock surged by as much as 10% before markets opened, with gains extending to 22% shortly after trading began. The company expects the acquisition to close in the second half of 2025. Once finalized, the merger is projected to add $2 billion in annual free cash flow, further strengthening Constellation’s financial position.

Read more: Federal Competition Office to Scrutinize High Electricity Prices in Germany

The acquisition reflects the growing urgency for reliable and sustainable energy solutions. Per Yahoo, the combined entity will boast nearly 60 gigawatts (GW) of low- and zero-emission capacity, allowing Constellation to solidify its position as a key player in the nation’s clean energy transition. CEO Joe Dominguez emphasized the critical need to meet rising energy demands, saying, “Demand for our products is expected to grow by levels we haven’t seen in a lifetime.”

The transaction significantly expands Constellation’s geographic footprint, particularly in the high-demand markets of Texas and California. With this deal, Constellation’s share of generation capacity in Texas will jump from 11% to 23%, while its presence in California will rise to 10%, up from a negligible amount. Both states rank among the most populous and energy-intensive in the country.

Aneesh Prabhu, an analyst with S&P, described the deal as transformative, noting that the merger will create “the largest coast-to-coast power generator” in the U.S. The acquisition will also boost Constellation’s workforce by 20%, adding approximately 2,750 employees to its ranks and bringing the total headcount to 16,500.

Source: Yahoo