Mexico: COFECE blocks acquisition of Soriana stores by Walmart

Mexico’s Federal Commission of Economic Competition (Cofece) determined that the purchase of some self-service stores of the retail company Soriana by Walmart was unfeasible because it considered that the operation would jeopardize the competition process.

“The concentration could create risks to the process of competition in the corresponding regions,” said the Mexican regulatory body. The stores that Walmart planned to acquire are located in five states across the country: Campeche, State of Mexico, Guanajuato, Guerrero and Jalisco. However, the Cofece refused to disclose the number of units Walmart planned to acquire. The transaction would also have been part of the divestment plan issued by Cofece to Soriana during its acquisition of stores of its rival, Comercial Mexicana, in 2015.

Last year, Soriana proposed that Chedraui, another retailer with ample national coverage, acquire six of the properties through a lease scheme, an operation that was not approved by the agency either.

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