FEMSA takes full control of OXXO Brazil in expansion push
Cash-neutral deal strengthens Latin American convenience store presence as company pursues aggressive store rollout
Fomento Económico Mexicano (FEMSA) has assumed full ownership of its OXXO convenience store operations in Brazil, completing a cash-neutral transaction that accelerates the company's retail expansion ambitions in Latin America's largest economy.
The Mexican conglomerate, which trades on the New York Stock Exchange under the ticker FMX, finalized the deal on February 2, taking complete control of all OXXO stores in Brazil and their distribution center in Cajamar, São Paulo. The transaction ended the joint venture with Brazilian energy company Raízen, known as Grupo Nós, with FEMSA assuming the venture's existing debt obligations.
While the specific valuation was not disclosed, Grupo Nós reported gross debt of R$411 million (approximately $75.5 million) and net debt of R$253.4 million (approximately $46.5 million) in a 2023 prospectus. As of September 2025, the joint venture comprised 611 OXXO proximity stores, having added 78 new locations in the preceding 12 months.
"Brazil represents a significant growth opportunity with its large market size and fragmented retail landscape," FEMSA stated in the transaction announcement. The company emphasized that accelerated store expansion would be prioritized to build a scalable, profitable business.
The move comes as Brazil's convenience store market demonstrates robust growth potential. The sector reached an estimated $35.4 billion in value during 2025 and is projected to expand to $46.3 billion by 2034, representing a compound annual growth rate of 3.04% from 2026 through 2034. The market remains characterized by fragmentation, with traditional gas station-anchored stores coexisting alongside emerging neighborhood "proximity" concepts and automated formats.
FEMSA shares closed at $104.36 on February 2, down 1.7% on the day, as investors weighed the strategic benefits against the debt assumption. The stock has traded between $76.22 and $108.97 over the past 52 weeks, and currently commands a market capitalization of approximately $37.3 billion.
The OXXO brand has emerged as one of Latin America's most significant retail success stories. Across its entire network spanning Mexico, Colombia, Chile, Peru, the United States, and now Brazil, the chain operated 24,462 stores as of December 31, 2024. The Brazilian acquisition represents a relatively small but strategically important piece of this footprint, positioning FEMSA to leverage its operational expertise in a market with different competitive dynamics than its home market.
Analysts maintain a cautiously optimistic outlook on the stock. The consensus rating sits at "Hold" with an average 12-month price target of $109.43 per share, according to recent analyst surveys. FEMSA's diversified business portfolio extends beyond retail, encompassing Coca-Cola bottling operations across Latin America and a logistics division that synergizes with its convenience store network.
The full ownership of OXXO Brazil eliminates the complexities of a joint venture structure, giving FEMSA complete autonomy over expansion strategy, pricing decisions, and capital allocation in the market. This streamlined governance structure typically enables faster decision-making and more aggressive competitive positioning, particularly valuable in Brazil's rapidly evolving convenience retail landscape.
Beyond the direct retail opportunity, control of the Brazilian operations strengthens FEMSA's broader Latin American distribution platform. The company's extensive supply chain and beverage distribution capabilities create operational advantages that can be leveraged across its expanding store network, potentially improving margins and accelerating the path to profitability in the Brazilian market.