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Mega-chain Oxxo invades US market

FEMSA, the owner of Mexico's Oxxo, expands into the US with the purchase of 249 DK stores in Texas and New Mexico. No surprise that a massive corporation like FEMSA continues to buy up competitors and expand their empire.

Published August 10, 2024 at 6:01am by Alexis Simmerman

Oxxo Owner, FEMSA, to Buy Delek's Texas Convenience Stores for $385M

Monterrey-based company to acquire DK convenience stores, operated by Delek US Holdings, in West Texas and New Mexico.

Fomento Económico Mexicano (FEMSA) is set to acquire 249 DK convenience stores from Tennessee's Delek US Holdings for $385 million in cash. The deal, announced on August 1, is expected to conclude by the end of 2024.

"This transaction represents the ideal way for us to take our first step in [the U.S.] compelling market." - Jose Antonio Fernandez Garza-Laguera, CEO of FEMSA's retail operations.

The sale comes just 18 months after Delek rebranded its 7-Eleven stores in El Paso to the new DK brand, selling Alon-branded gasoline. Delek has owned these stores for seven years and expects to maintain a relationship with FEMSA for gasoline supply post-sale.

With Oxxo's strong presence in Mexico and South America, FEMSA has long desired a piece of the U.S. convenience store market. As of June, Oxxo operated 22,658 stores in Mexico and 1,022 in South America. In Feb 2023, FEMSA announced a strategic shift to focus on retail, Coca-Cola bottling, and digital platforms. This led to the sale of its major stake in Heineken in May 2023.

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