FEMSA to acquire Delek US retail assets in $385mn deal

With the acquisition, FEMSA finally enters the U.S. convenience and mobility market.

FEMSA and Delek US Holdings have finalized a definitive agreement for FEMSA to acquire Delek’s retail business for $385 million. The transaction, which includes inventory, is expected to close by late third quarter or early fourth quarter of this year.

Delek's retail network consists of 249 stores across the Southwestern United States, primarily in Texas and New Mexico, operating under the DK brand. FEMSA, a Mexico-based company, operates in over 17 countries and is known for its OXXO brand, the largest small-format convenience store chain in the Americas, with more than 22,800 stores in five countries, including Mexico, Colombia, Chile, Peru, and Brazil.

"Entering the U.S. convenience and mobility market has been a long-term goal for FEMSA, and this acquisition marks a significant first step in achieving that ambition. We have a history of expanding our retail operations, beginning in Mexico and extending to ten other countries in South America and Europe, now boasting over 30,000 locations," said José Antonio Fernández Garza-Lagüera, CEO of FEMSA’s retail division.

Avigal Soreq, President and CEO of Delek, commented, "The sale of Delek US Retail to FEMSA represents an important move towards realizing the intrinsic value within our system. We are pleased with this transaction and look forward to unlocking further value for our stakeholders. This deal also allows us to secure a strong partner for continued and expanded retail fuel sales."

The move is in line with the expansion campaign of the Mexican retail giant. In 2022, FEMSA moved into Europe with the acquisition of Swiss energy company Valora.