By Anthony Harrup
MEXICO CITY--Mexican retail and beverages company Fomento Economico Mexicano, or Femsa, on Thursday said it has reached an agreement with Brazil's Raizen to dissolve their joint venture, with both partners to continue operating their respective convenience stores in the South American country.
The joint venture, called Grupo Nos, was formed in 2019 and includes Femsa's Oxxo stores and Raizen's Shell Select stores.
Under the agreement, reached on amicable terms, Femsa will keep all of the Oxxo stores in Brazil as well as a distribution center in Sao Paulo state, and Raizen will retain all the Shell Select stores.
Other assets and liabilities of the joint venture will be divided between the two partners. The transaction is cash neutral for both, and Femsa will assume Grupo Nos debt, Femsa said.
Femsa said its collaboration with Raizen was instrumental in establishing Oxxo's presence in Brazil, where it aims to focus on accelerated store expansion.
"As we take the next step toward operating independently, we remain fully committed to strengthening and expanding Oxxo in this vibrant market," Femsa Retail's chief executive Jose Antonio Fernandez said in a release. The separation is expected to close in coming months.
Write to Anthony Harrup at anthony.harrup@wsj.com
(END) Dow Jones Newswires
09-04-25 0900ET
