FEMSA has announced that it intends to acquire Delek US Holdings, Inc.’s retail operations, consisting of 249 convenience stores, for $385 million.

Cover photo: A prototypical Oxxo supermarket. Image: Facebook

Posted: 8-11-2024

Monterrey (Mexico) — FEMSA has announced that plans to buy Delek US Holdings, Inc. Retail operation with 249 convenience stores for $385 million

Monterrey-based FEMSA (Fomento Económico Mexicano, SAB de CV) currently operates 30,000 convenience stores in Mexico, Chile, Colombia, Peru and Brazil.

Approximately 90% of Delek’s convenience stores operating under the DK brand are located in the state of Texas, with the remainder primarily in New Mexico and a small presence in Arkansas. Almost all stores have a fueling station under the DK and Alon Fuel brands; the transaction also includes a small fuel transportation fleet.

The cost of remodeling the stores to the look and feel of the OXXO brand that the company operates in Mexico was not disclosed, but the company believes it has positioned itself well to maximize its convenience value proposition.

Through OXXO, FEMSA has built up considerable experience and expertise in developing core retail competencies in store expansion, sourcing, supply chain, segmentation and pricing. These competencies will be invaluable to the company as it launches and pursues its convenience strategy for the US. Although the strategy is ultimately broader than a single region or target audience, the appeal of the OXXO brand may be relevant in certain markets served by the DK stores.

“The sale of Delek US Retail to FEMSA is another step in our efforts to unlock the full value of our system. We are pleased with this transaction and look forward to taking further steps to unlock value for our stakeholders,” said President and CEO Delek Aviagal said. “Importantly, this will enable us to gain a competitive partner for ongoing and expanded retail fuel sales. We look forward to growing this partnership with FEMSA both in the near and long term. The transaction presents an exciting opportunity for Delek US Retail and its employees as they become part of FEMSA’s growth strategy in the United States.

Edited from the press release.

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