FEMSA takes over OXXO Brazil after ending Raízen joint venture

Retail giant consolidates OXXO operations in Brazil as Raízen retains Shell Select stores.

Fomento Económico Mexicano (FEMSA) announced it has reached a definitive agreement with Raízen to end their joint venture in Brazil known as Grupo Nós, a partnership that included OXXO and Shell Select outlets.

Under the terms of the deal, FEMSA will retain all OXXO stores in Brazil and the distribution center in Cajamar, São Paulo, while Raízen will keep its Shell Select stores. Other assets and liabilities will be divided between the companies as agreed. The transaction is expected to be cash-neutral for both sides, with FEMSA assuming Grupo Nós’ outstanding debt at closing.

The company reaffirmed Brazil as a strategic priority for its retail business, citing the market’s size, fragmented c-sector, and growing consumer demand for modern retail formats. 

“We greatly appreciate our collaboration with Raízen, which has been essential in establishing OXXO’s presence in Brazil,” said José Antonio Fernández Garza, CEO of FEMSA Retail. “As we take the next step to operate independently, we remain fully committed to strengthening and expanding OXXO in this dynamic market. Brazil continues to be a key focus in FEMSA’s long-term growth strategy.”

Since entering Brazil, FEMSA has positioned OXXO as a standalone proximity format in a market still dominated by traditional commerce, taking advantage of the low penetration of modern convenience stores.

The separation of OXXO and Shell Select stores remains subject to regulatory approvals and other customary conditions, with closing expected in the coming months.