Fomento Econ mico Mexicano, S.A. de C.V. announced it has entered into definitive agreements with Raen, S.A. to amicably terminate their joint venture in Brazil known as Grupo N s" that includes OXXO proximity stores and Shell Select convenience stores, allowing both companies to focus on their respective business' strategies. Under the terms of the agreement, FEMSA will retain all the OXXO stores in Brazil, as well as the distribution center located in Cajamar, Paulo, while Raen will retain all the Shell Select convenience stores. All other assets and liabilities will be allocated between Raen and FEMSA as agreed in the definitive agreements.
The transaction will be cash-neutral for both parties, with FEMSA assuming the existing and outstanding debt of Grupo N s as of closing. OXXO Brazil is a top strategic priority within FEMSA's retail business strategy. The country's large market size, highly fragmented retail landscape, and strong product-market fit with the OXXO value proposition present a significant growth opportunity.
FEMSA aims to build a scalable, profitable business by focusing on accelerated store expansion, adapting the OXXO format to local consumer needs, and driving long-term return on invested capital through sustained top-line growth and operational efficiency.
