Wal-Mart Sues Puerto Rican Justice Dept.
by December 23, 2002 12:00 am 57 views
Wal-Mart Stores Inc. has filed suit against the Puerto Rican justice department to prevent it from blocking the company’s acquisition of a local supermarket chain.
The suit, filed Dec. 6 in a federal court in San Juan, accuses the justice department of discrimination in pursuing an antitrust action to block Wal-Mart’s purchase of Amigo supermarkets, Wal-Mart spokesman Federico Gonzalez Denton told local radio station Noti Uno.
“What we feel is that a very different measurement is being used from what has been used in the past with other transactions,” Gonzalez Denton said on the radio.
The acquisition was reportedly worth $225 million.
The Wal-Mart lawsuit names as defendant Justice Secretary Anabel Rodriguez, who has confirmed the government’s intention to sue Wal-Mart to apply local antitrust laws.
Rodriguez said the transaction ran contrary to the best interests of consumers, business owners and distributors in the U.S. Caribbean island.
The Federal Trade Commission issued a consent decree in early December validating the February acquisition and allowing Wal-Mart to close the purchase, which it did Dec. 5, Gonzalez said.
“All legitimate antitrust concerns related to the purchase of Supermercados Amigo were addressed by the consent decree,” Gonzalez said.
Wal-Mart operates 19 stores on the island, including eight Sam’s Clubs. With the Amigo acquisition, Wal-Mart would employ about 10,000 people in the U.S. territory of Puerto Rico, the company has said.
The 34 Amigo supermarkets would continue operating under the Amigo brand name. Amigo was established in 1966.
n Wal-Mart said on Dec. 9 that snow and ice hurt sales for the previous week, but it still expects December sales growth at stores open at least a year to be within the 3 percent to 5 percent forecast range.
The world’s largest retailer said sales at stores open at least one year — also known as same-store sales — were near the low end of the monthly growth plan in the week ended Dec. 6. Its five-week December sales period ends Jan. 3 and includes the bulk of the holiday shopping season.