Raizen, FEMSA End Convenience Store Joint Venture in Brazil

Brazil’s Raizen and Mexico’s FEMSA announced the end of their joint venture Grupo Nos, which has operated a network of convenience stores across Brazil since 2019. The decision aligns with Raizen’s broader divestment strategy as the sugar and fuel distributor addresses operational challenges and high debt levels.

Under the agreement, which does not involve a cash payment, Raizen will take control of 1,256 Shell Select and Shell Café stores. FEMSA will receive 611 OXXO stores, a distribution center in São Paulo state, and Grupo Nos’s existing cash and debt.

Raizen, one of the world’s largest sugar producers and a leading fuel distributor, said in a securities filing that the move will allow it to focus resources on core businesses.

FEMSA, through its OXXO brand, continues its expansion in Brazil’s convenience store market while consolidating assets from the joint venture.

Following the announcement, Raizen shares rose more than 8%.