The owner of the Mexican Oxxo convenience stores is crossing the border and expanding into parts of West Texas and New Mexico.
Fomento Económico Mexicano (FEMSA), based in Monterrey, Mexico, has agreed to buy the 249 DK convenience stores from Tennessee-based oil refiner Delek US Holdings for $385 million in cash. About 90 percent of the 77 DK convenience stores operate in Texas, with some in New Mexico and a small presence in Arkansas.
The deal was announced on August 1 and is expected to be completed by the end of 2024.
Delek businesses sold to FEMSA
The upcoming sale comes just 18 months after Delek completed the rebranding of its 7-Eleven stores in El Paso to the new DK brand. The stores sell the company’s Alon-brand gasoline.
Delek has owned the convenience stores for seven years.
Delek officials said in a statement that they plan to enter into a contract with FEMSA to continue supplying gasoline to the stores. The El Paso stores currently get gasoline from Delek’s oil refinery in Big Spring, Texas.
FEMSA expands corporate portfolio to include the USA
FEMSA has long wanted to enter the U.S. convenience store market, “and this transaction represents the ideal way for us to take our first step into this attractive market,” said Jose Antonio Fernandez Garza-Laguera, CEO of FEMSA’s retail business, in a statement.
Oxxo had 22,658 stores in Mexico, including in Juárez, and 1,022 stores in South America at the end of June, according to its most recent financial report. FEMSA operates in more than 17 countries.
In February 2023, FEMSA officials announced a long-term plan to focus on its three core businesses: retail stores, bottling of Coca-Cola products in Mexico and eight other Latin American countries, and digital platforms based on the electronic transaction system and the Spin by Oxxo credit card.
As part of the new plan, FEMSA sold its majority stake in the giant beer brewer Heineken in May 2023.
