Oxxo, the ubiquitous Mexican convenience store, is officially expanding to the southern United States.
More than one decade after opening its first and only storefront in Eagle Pass, Texas, parent company Femsa has acquired 249 convenience stores from Delek US Holdings. The stores acquired by Femsa are located in Texas and New Mexico.
Oxxo’s expansion to the United States is a decade in the making. The convenience store opened its first U.S. storefront in Eagle Pass, Texas in 2014, but closed it during the pandemic. (@SergioChapa/X)
Femsa filed a statement with the Mexican Stock Exchange (BMV) earlier this month reporting the US $385 million acquisition. The deal includes inventory and a small fuel transportation fleet, the companies said in separate news releases on Aug. 1.
José Antonio Fernández, CEO of Femsa’s retail operations, said: “At Femsa, we have a long-held ambition to enter the U.S. convenience and mobility industry, and this transaction represents the ideal way for us to take our first step in this compelling market.”
The transaction is subject to regulatory approval in the United States. The partners expect that to happen during the second half of 2024.
Oxxo is a Mexican chain of convenience stores and gas stations, which, with roughly 30,000 stores in over 17 countries, is the largest chain of convenience stores in Latin America.
Oxxo is wholly owned by Femsa (Fomento Económico Mexicano, S.A.B. de C.V.), a Mexican multinational beverage and retail company headquartered in Monterrey. It operates the largest independent Coca-Cola bottling group in the world and the largest convenience store chain in Mexico.
Delek US Holdings, based in Nashville, Tennessee, has assets in petroleum refining, logistics, pipelines, renewable fuels and convenience stores, 90 percent of which are located in Texas. Most Delek stores include a gas station under the DK and Alon brands.
Avigal Soreq, president and CEO of Delek, said: “The transaction creates an exciting opportunity for Delek US Retail and its employees as they become part of Femsa’s growth strategy in the United States.”
Femsa reiterated its long-held plans to expand into the United States in April, after divesting its shares of Heineken in 2023. According to the news site Expansión, Femsa director José Antonio Fernández told analysts in an earnings call that the company was evaluating opportunities in U.S. border states where customers were likely to be familiar with the Oxxo brand.
An earlier attempt to expand into the U.S. market was foiled by its Heineken holdings, according to Expansión. In 2014, Femsa was blocked by fair competition rules that declared the relationship with Heineken a conflict of interest for having an exclusive agreement to distribute the Dutch brewer’s beverages.
With reports from Milenio, KTSM and Expansión
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Publish date : 2024-08-12 06:35:00
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