BENTONVILLE, Ark. -- Wal-Mart Stores here said it has reached a settlement with a Mexican wholesaler for an amount less than the $624 million a San Antonio jury ordered Wal-Mart to pay.
alores Corp., Monterrey, Mexico, and McLane in 1993 -- shortly after Wal-Mart acquired McLane -- because of an ongoing partnership Wal-Mart had with Cifra, Mexico's largest retailer.
Wal-Mart last week declined to discuss terms of its out-of-court settlement with Valores. However, it said the amount would be less than the $624 million verdict and would result in a charge to nonoperating earnings of about 3 cents per share, after reduction for associated reserves and taxes, in the second quarter.
Valores said $624 million is the amount it would have earned if the partnership with McLane and Wal-Mart had lasted 25 years. Its contract with McLane, signed in 1991, made the two companies equal partners in supplying products to Valores' Mexican customers.
Wal-Mart said the contract was canceled because of its ongoing partnership with Cifra, under which the two companies opened a handful of Sam's Club warehouse stores in a joint venture beginning in 1991; Wal-Mart eventually bought a controlling interest in Cifra in 1997.