In a move signaling a healthy Mexican economy, Wal-Mart de Mexico has agreed to sell its Vips restaurant chain to Mexican restaurant operator Alsea for $626 million. The sale will simplify Walmex's operations and give local flavor to Alsea's offerings.  

The unit is made up of 362 restaurants, mostly under the Vips brand. Walmex said in June it was considering selling the business, which analysts said could fetch between $600 million and $700 million.

Wal-Mart de Mexico SAB posted its biggest advance in two years after President Enrique Pena Nieto avoided proposing taxes on food and medicine in a fiscal bill he sent to Congress yesterday.

Walmex, as Latin America's biggest retailer is also known, climbed 5.5 percent to 34.09 pesos at the close of trading in Mexico City, the most since August 2011. Supermarket chain Grupo Comercial Chedraui SAB (CHDRAUIB) jumped 7.1 percent, while baker Grupo Bimbo SAB rallied 7.7 percent. The country's benchmark IPC index advanced 2.6 percent, the most in 21 months.

Meanwhile the retail giant is still shrouded in controversy after the company was accused of illegally bribing Mexican officials to speed up getting building permits and gain other favors, back in March. At the time economists said it was 'probable' that the world's largest retailer will incur a loss due to ongoing investigations by itself and government agencies.

The company said it does not currently expect the loss to be material, and it says it is too early to speculate on the size of the damage. The statements came in a filing with the Securities and Exchange Commission.

Walmart Stores has been dealing with allegations that surfaced last April that it failed to notify law enforcement that company officials authorized millions of dollars in bribery payments in Mexico. The Foreign Corrupt Practices Act forbids American companies from bribing foreign officials.

Emails released by U.S. lawmakers show that Walmart CEO Mike Duke learned in 2005 that executives in the company's Mexico unit handed out bribes to local officials -- contradicting earlier statements that the company knew nothing about it.

The company has launched its own investigation and is working with government officials in the U.S. and Mexico. In November, the retailer said in a filing with the Securities and Exchange Commission that it was looking into potential U.S. bribery law violations in Brazil, China and India.

In another filing Tuesday with the SEC, Walmart Stores said that it expects to incur costs above the $157 million it spent on the probes in fiscal 2013 because of its ongoing review and other investigations as well as shareholder lawsuits

It also said it is "probable" that it will incur a loss from the matters, but did not give an estimate on how much.

"Given the on-going nature and complexity of the review, inquiries and investigations, we cannot reasonably estimate any loss or range of loss that may arise from these matters," Bentonville, Ark.-based Walmart said in the filing.

The company said it does not currently think the lawsuits will have a "material adverse effect" on its business but said it is possible that could change in the future.