Fomento Económico Mexicano (FEMSA), a prominent player in the global retail and beverage industries, announced a significant move into the US convenience store market by acquiring Delek US Holdings, Inc.’s retail operations. This acquisition, valued at $385 million, includes 249 convenience stores primarily located in Texas, with additional locations in New Mexico and Arkansas. This strategic expansion marks FEMSA’s initial foray into the highly competitive US market.
Expanding FEMSA’s Retail Footprint
The purchase of Delek’s convenience stores provides FEMSA with a robust platform to launch its US operations, leveraging the substantial experience gained from its extensive retail network in Mexico, South America, and Europe. These stores, operating under the DK and Alon fuel banners, are ideally positioned in some of the most dynamic and growing regions of the US, offering both convenience retail and fuel services.
A Vision for Growth and Innovation
José Antonio Fernández Garza-Lagüera, CEO of FEMSA’s retail operations, expressed enthusiasm about the acquisition, viewing it as a pivotal step towards realizing FEMSA’s long-term ambitions in the US convenience and mobility sector. The company plans to utilize its deep retail expertise to innovate and enhance the customer experience at these new locations, potentially integrating successful elements from its OXXO brand to cater to specific market needs.
Mutual Benefits and Future Collaborations
Avigal Soreq, President and CEO of Delek, also commented on the transaction, highlighting the benefits for both entities. This sale not only streamlines Delek’s focus on its core downstream energy operations but also establishes a foundation for future collaboration with FEMSA, particularly in retail fuel sales. This partnership is expected to unlock additional value for stakeholders and contribute to both companies’ growth strategies in the US.
Regulatory Approvals and Closing Details
The completion of this acquisition is subject to customary regulatory approvals and is anticipated to close in the second half of 2024. This timeline allows both FEMSA and Delek to prepare for a smooth transition and integration of the retail operations, ensuring continuity of service and minimal disruption.
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FEMSA
FEMSA is a leading conglomerate with interests across various sectors including retail, health, and beverages, notably as the largest franchise bottler of Coca-Cola products globally. The company is committed to creating economic and social value while striving to be a leading employer and community partner in the regions it serves.
Delek US Holdings, Inc.
Delek US Holdings, Inc. is a diversified downstream energy company engaged in petroleum refining, logistics, and convenience store retailing. The company’s refining and pipeline operations span several states, complemented by a significant stake in Delek Logistics Partners, LP, a key player in midstream energy infrastructure.
This bold move by FEMSA signifies a significant shift in the landscape of the US convenience store market, positioning the company as a formidable player ready to bring its unique blend of innovation and customer service excellence to American consumers.
