FEMSA and Delek US Holdings have reached a definitive agreement for the sale of Delek’s retail business to FEMSA for $385 million. The acquisition, which includes inventories, should be complete in late third quarter or in the fourth quarter of this year.

Delek has 249 stores throughout the Southwestern region of the United States, primarily in Texas and New Mexico, under the DK brand. FEMSA is based out of Mexico and runs operations in over 17 countries, including its OXXO brand, the largest small-format proximity store operator in the Americas with over 22,800 stores in five countries, including Mexico, Colombia, Chile, Peru and Brazil.

“At FEMSA, we have a long-held ambition to enter the U.S. convenience and mobility industry, and this transaction represents the ideal way for us to take our first step in this compelling market. We have been building and expanding our retail operation in Mexico for over 45 years, eventually reaching ten other countries in South America and Europe, and a store base of more than 30,000 locations,” said José Antonio Fernández Garza-Lagüera, the CEO of FEMSA’s retail operations. “As we welcome our new DK colleagues into the FEMSA family, we are excited to embark on this new and important journey together.”

“The sale of Delek US Retail to FEMSA is an incremental step in our commitment to unlock the sum of the parts value inherent in our system. We are pleased with this transaction and expect to execute on additional steps to unlock value for our stakeholders. Importantly, it allows us to gain a competitive partner for ongoing and expanded retail fuel sales,” said Avigal Soreq, the president and chief executive officer of Delek.

“We look forward to building on this partnership with FEMSA in both the short and long-term. The transaction creates an exciting opportunity for Delek US Retail and its employees as they become part of FEMSA’s growth strategy in the United States,” Soreq added.