DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - Grupo Ramos

**KahiroSamo** · 05-27-2012, 02:46 PM

To gain a foothold in a country, Walmart has been acquiring small chains of stores throughout Latin America. So this strategy involving Grupo Ramos, if true, defintely fits their modus operandi.

If not, its only a matter of time before Walmart enters the DR, by buying someone else....and it will probably be sooner rather than later (although Grupo Ramos makes the most sense).

Walmart signaled its intentions in Latin America in a big way by establishing in 2010 a regional office in Florida just to handle Latin America. Today, Walmart is the largest employer in Latin America, and with a financially slowing Europe as well as growth retrenchment in China, Walmart has been stepping up its activities in this region.

Aside from all the problems involving merger and acquistion, two key issues for Walmart entering the DR will be transport of their goods and banking. Walmart will not tolerate the control that the transport sector currently enjoys in the DR. Whether an accord between the parties can be reached beforehand remains unknown, but rest assured it is on Walmart's punch list, right up there with banking.

Walmart has been trying for years to get into banking here in the US, and has been summarily denied access by the regulators. It has succeeded in getting banking licenses in many Latin American countries (Mexico being the largest coup de tat for them) and I suspect that they will want the same in the DR.

So the questions are, does Grupo Ramos have contractual banking relationships inside their stores with other banks, for how long, and can they be bought out? I suspect the banking lobby (if there is such a thing in the DR) will probably work to at least block Walmart from obtaining banking licenses....and then does Walmart enter the country without them?

Lots and lots of questions/issues/logistics to be worked through before this becomes reality.....not to mention the apparent breach of confidentiality agreement (that is standard and ongoing in any real M&A) by an "insider" at Grupo Ramos.

Respectfully,
Playacaribe2

05-27-2012, 02:46 PM	#31
KahiroSamo Join Date Oct 2005 Posts 461 Senior Member	To gain a foothold in a country, Walmart has been acquiring small chains of stores throughout Latin America. So this strategy involving Grupo Ramos, if true, defintely fits their modus operandi. If not, its only a matter of time before Walmart enters the DR, by buying someone else....and it will probably be sooner rather than later (although Grupo Ramos makes the most sense). Walmart signaled its intentions in Latin America in a big way by establishing in 2010 a regional office in Florida just to handle Latin America. Today, Walmart is the largest employer in Latin America, and with a financially slowing Europe as well as growth retrenchment in China, Walmart has been stepping up its activities in this region. Aside from all the problems involving merger and acquistion, two key issues for Walmart entering the DR will be transport of their goods and banking. Walmart will not tolerate the control that the transport sector currently enjoys in the DR. Whether an accord between the parties can be reached beforehand remains unknown, but rest assured it is on Walmart's punch list, right up there with banking. Walmart has been trying for years to get into banking here in the US, and has been summarily denied access by the regulators. It has succeeded in getting banking licenses in many Latin American countries (Mexico being the largest coup de tat for them) and I suspect that they will want the same in the DR. So the questions are, does Grupo Ramos have contractual banking relationships inside their stores with other banks, for how long, and can they be bought out? I suspect the banking lobby (if there is such a thing in the DR) will probably work to at least block Walmart from obtaining banking licenses....and then does Walmart enter the country without them? Lots and lots of questions/issues/logistics to be worked through before this becomes reality.....not to mention the apparent breach of confidentiality agreement (that is standard and ongoing in any real M&A) by an "insider" at Grupo Ramos. Respectfully, Playacaribe2
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