Oxxo, the ubiquitous Mexican retailer, is officially expanding into the southern United States.
More than a decade after opening its first and only store in Eagle Pass, Texas, parent company Femsa acquired 249 convenience retail locations from Delek US Holdings. The points of sale acquired through Femsa are located in Texas and New Mexico.
Femsa presented an agreement to the Mexican Stock Exchange (BMV) earlier this month declaring the acquisition of 385 million dollars. The deal includes stock and a small fuel transportation fleet, the corporations said in separate press releases on Aug. 1.
José Antonio Fernández, CEO of Femsa’s retail operations, said: “At Femsa, we have a long-standing ambition to enter the US convenience and mobility sector, and this transaction represents the ideal for us to take our first step in this “so hot market. “
The transaction is subject to US regulatory approval and the partners expect this to occur today, in 2024.
Oxxo is a Mexican chain of convenience stores and fuel stations that, with approximately 30,000 retail stores in more than 17 countries, is the largest convenience store chain in Latin America.
Oxxo is wholly owned by Femsa (Fomento Economico Mexicano, S. A. B. de C. V. ), a Mexican multinational beverage and retail company based in Monterrey. It operates the largest independent Coca-Cola bottling organization in the world and the largest convenience store chain in Mexico.
Delek US Holdings, founded in Nashville, Tennessee, has assets in petroleum refining, logistics, pipelines, renewable fuels, and retail outlets, 90% of which are in Texas. Most Delek outlets have a DK and Alon brand service station.
Avigal Soreq, president and CEO of Delek, said: “The transaction creates an exciting opportunity for Delek US Retail and its workers as part of Femsa’s expansion strategy in the United States. »
Femsa reiterated in April its long-standing plans to expand in the United States, after promoting its Heineken shares in 2023. According to the news site Expansión, FEMSA CEO Jose Antonio Fernandez told analysts on an earnings conference call that the company was comparing opportunities in United States border states where consumers were likely familiar with the Oxxo brand.
An earlier attempt to expand into the U. S. market failed through its stakes in Heineken, according to Expansión. In 2014, Femsa blocked through a regulation of party fairs that declared that the courtship with Heineken was a clash of interests due to an exclusive agreement to distribute the Dutch brewer’s drinks.
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