OXXO parent company FEMSA has entered into a definitive agreement with Delek US, through which FEMSA will acquire all of Delek’s retail business for $385 million, including the purchase of inventories.
The deal — which is expected to close late in the third quarter or in the fourth quarter of 2024 — will bring FEMSA to the U.S. for the first time.
“For FEMSA, this market offers high strategic fit, and presents an opportunity to build a platform that, over time, has the potential to achieve scale and create shareholder value,” FEMSA noted in a statement. “The Delek stores have the right set of attributes to be FEMSA’s first step on this journey, in terms of size, geographical footprint and possibilities for extensive experimentation, testing and fine-tuning of the company’s convenience value proposition.”
Delek currently operates 249 corporate stores, mostly in the southwestern U.S., including locations in Texas and New Mexico. Delek operates company stores under the DK brand.
FEMSA is one of the largest conglomerates in Mexico with operations in over 17 countries. Through FEMSA’s Proximity & Health Division, it operates OXXO, which has over 22,800 stores in five countries, including Mexico, Colombia, Chile, Peru and Brazil.
“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,” said José Antonio Fernández Garza-Lagüera, CEO of FEMSA’s retail operations. “We have been building and expanding our retail operation in Mexico for over 45 years, eventually reaching ten other countries in South America and Europe, and a store base of more than 30,000 locations. As we welcome our new DK colleagues into the FEMSA family, we are excited to embark on this new and important journey together.”
“The sale of Delek US Retail to FEMSA is an incremental step in our commitment to unlock the sum of the parts value inherent in our system. We are pleased with this transaction and expect to execute on additional steps to unlock value for our stakeholders,” said Avigal Soreq, president and CEO of Delek. “Importantly, it allows us to gain a competitive partner for ongoing and expanded retail fuel sales. We look forward to building on this partnership with FEMSA in both the short and long-term. The transaction creates an exciting opportunity for Delek US Retail and its employees as they become part of FEMSA’s growth strategy in the U.S.”
