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 retail establishments acquired through Femsa are located in Texas and New Mexico.
Femsa filed with the Mexican Stock Exchange (BMV) earlier this month reporting the acquisition for US$385 million. The deal includes shares and a small fuel transport fleet, the corporations said in separate press releases Aug. 1.
Jose Antonio Fernandez, Femsa’s Chief Retail Officer, said: “At Femsa, we have a long-standing ambition to enter the United States convenience and mobility sector, and this transaction represents the best way for us to take our first step into this hot market. “
The transaction is subject to approval by U. S. regulatory authorities. The partners expect this to happen right now in 2024.
Oxxo is a Mexican chain of convenience stores and fuel stations that, with approximately 30,000 points of sale in more than 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 world’s largest independent Coca-Cola bottling organization and the largest convenience store chain in Mexico.
Delek US Holdings, founded in Nashville, Tennessee, has assets in oil refining, logistics, pipelines, renewable fuels and convenience retail, 90% of which are located in Texas. Most of Delek’s retail establishments have a service station under the DK and Alon brands. .
Avigal Soreq, Delek’s President and Chief Executive Officer, 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 its long-standing expansion plans in the United States in April, after promoting its Heineken shares in 2023. According to the news site Expansión, the director of Femsa, José Antonio Fernández, told analysts in an earnings call that the company is comparing opportunities in the United States. border states where consumers were most likely to be familiar with the Oxxo brand.
A previous attempt to expand into the US market failed through its holdings in Heineken, according to Expansión. In 2014, Femsa blocked through a party fair regulation that declared the relationship with Heineken a clash of interests due to an exclusive agreement to distribute the Dutch brewer’s drinks.
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