Puerto Rico Judge Blocks Wal-Mart Buy
Dec. 06, 2002
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SAN JUAN, Puerto Rico (AP) _ A judge temporarily blocked Wal-Mart's acquisition of a local supermarket chain on Friday, saying it could substantially reduce competition or it could create a monopoly.
Superior Court Judge Milagros Rivera Guadarrama issued a decision responding to a government motion filed Friday claiming Wal-Mart's purchase of Supermercados Amigo's 35 supermarkets and 4,500 employees violated the island's antitrust laws.
Wal-Mart Puerto Rico Inc. officials didn't immediately return telephone calls seeking comment.
``The court has determined that the plaintiff, the State, has demonstrated the Amigo's acquisition by Wal-Mart could have the affect of substantially reducing competition or could create a monopoly,'' Rivera Guadarrama wrote in her decision.
The decision prohibits Amigo from transferring its holdings to Wal-Mart until the matter is resolved in the courts, the judge said.
The U.S. Federal Trade Commission issued a consent decree Nov. 29 validating the February acquisition and freeing up Wal-Mart to close the purchase, which it did Thursday morning.
The U.S. retail giant has said antitrust concerns surrounding the acquisition, reportedly worth $225 million, were already addressed by the consent decree.
Bentonville, Arkansas-based Wal-Mart Stores Inc. already operates 19 stores including eight Sam's Clubs in Puerto Rico. With the Amigo acquisition, Wal-Mart will employ about 10,000 people in this U.S. Caribbean territory, the company has said.
Founded in 1966, the Amigo supermarkets will continue operating under the Amigo brand name.