Walmart de México y Centroamérica Informs on COFECE's Resolution

Editor's Note — The following release was published by Walmex.

Walmart de México y Centroamérica Informs on COFECE's Resolution

Dec. 13, 2024

• Walmex remains committed to offering consumers and Mexican families Every Day Low Prices
• Walmex is confident that COFECE’s decision will not ultimately impact its business operations
• Walmex believes that COFECE’s decision is flawed and will challenge it

Wal-Mart de México S.A.B. de C.V. (BMV / BIVA: WALMEX) informs its shareholders and the general public that on Thursday, December 12, the Comisión Federal de Competencia Económica (“COFECE”) notified our main operating subsidiary in México that COFECE’s governing body, in a split decision reached by the commissioners acting on the matter, concluded that Walmex had engaged in a single relative monopolistic practice regarding supplier contributions. COFECE fined Walmex in the amount of MX$93,366,000 pesos (less than US$5 million dollars based on current exchange rates). 

COFECE recognizes that Walmex can continue negotiating contributions with its suppliers except for two specific contributions out of the four originally investigated. COFECE ordered remedies that limit the ability of Walmex to implement those two contributions even though they are negotiated and agreed with suppliers and are customary in the market and benefit consumers.

While Walmex is reviewing the specifics of the more than 900-page decision, based on our preliminary review, Walmex believes that COFECE’s analysis is flawed and that COFECE erred in the application of the law. Since Walmex and its subsidiaries believe they have acted in compliance with applicable laws to the benefit of Mexican families, and due to the irregularities in COFECE’s investigation and proceedings, Walmex will challenge COFECE's decision.

Walmex is disappointed by this decision but will continue working collaboratively with its suppliers to ensure business continuity in compliance with the COFECE’s resolution, while we challenge the decision.

Information regarding this process can be found on our website: www.walmex.mx.

This document may contain certain references concerning Wal-Mart de México S.A.B. de C.V.’s (“Walmex” or the “Company”) future performance that should be considered as good faith estimates made by the Company. These references are a reflection of Managements’ expectations about the Company and are based upon currently available data. Actual results are always subject to future events, risks and uncertainties, which could materially impact the Company’s actual performance. The Company is a majority owned subsidiary of Walmart Inc., a Delaware corporation (“Walmart”). Walmart considers references made in this press release regarding Walmex’s intention to appeal the resolution, Walmex’s belief that it will successfully appeal the resolution, and that the resolution will not ultimately impact Walmex’s business operations to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended (the “Act”), that are intended to enjoy the protection of the safe harbor for forward-looking statements provided by the Act. These forward-looking statements are subject to certain risks, uncertainties and other factors.