MEXICO CITY, Dec 13 (Reuters) - Mexico's antitrust

watchdog Cofece ruled that Walmex, the local unit of

U.S.-based retail giant Walmart ( WMT ), engaged in a

monopolistic practice related to its suppliers, the company said

in a statement on Friday.

Walmex noted it has been ordered to pay a fine of just over

93 million pesos, or about $4.6 million, while stressing it

believes the regulator's analysis is incorrect and that it will

appeal its ruling.

"Walmex is disappointed by this decision but will comply

with Cofece's resolution while challenging the decision," the

company said.

The Cofece resolution follows an investigation into Mexico's

top retailer, which also operates stores in Central America,

that lasted just over four years.

Cofece had accused Walmex of imposing prices and terms on

its suppliers or distributors, in a case that centered on a lack

of competition in the retail sector in many parts of Mexico.

In its statement, Walmex said the regulator acknowledged

that the retailer can continue negotiating payments to its

suppliers, except for two specific cases among the four

originally investigated.

Walmex added that it does not believe the ruling will

ultimately impact its operations.

($1 = 20.2422 Mexican pesos)