Wal-Mart Bribery Scandal in Mexico Taints $626 Million Restaurant Chain Sale Celeste Morgan - Latin Post
go to original September 12, 2013

A Vips restaurant and a WalMart store in Mexico City. (EFE)

In a move signaling a healthy Mexican economy, Wal-Mart de Mexico has agreed to sell its Vips restaurant chain to Mexican restaurant operator Alsea for $626 million. The sale will simplify Walmex's operations and give local flavor to Alsea's offerings.  

The unit is made up of 362 restaurants, mostly under the Vips brand. Walmex said in June it was considering selling the business, which analysts said could fetch between $600 million and $700 million.

Wal-Mart de Mexico SAB posted its biggest advance in two years after President Enrique Pena Nieto avoided proposing taxes on food and medicine in a fiscal bill he sent to Congress yesterday.

Walmex, as Latin America's biggest retailer is also known, climbed 5.5 percent to 34.09 pesos at the close of trading in Mexico City, the most since August 2011. Supermarket chain Grupo Comercial Chedraui SAB (CHDRAUIB) jumped 7.1 percent, while baker Grupo Bimbo SAB rallied 7.7 percent. The country's benchmark IPC index advanced 2.6 percent, the most in 21 months.

Meanwhile the retail giant is still shrouded in controversy after the company was accused of illegally bribing Mexican officials to speed up getting building permits and gain other favors, back in March. At the time economists said it was 'probable' that the world's largest retailer will incur a loss due to ongoing investigations by itself and government agencies.

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