MEXICO: Circulo K buys Extra chain from A-B InBev's Modelo
Mexican retailer Circulo K has acquired fellow c-store chain Extra from local brewing giant Grupo Modelo, part of Anheuser-Busch InBev, the world's largest beer maker.
The first Circulo K store in Mexico was opened in 2006. With the acquisition of Extra stores, the Circulo K will business will grow to more than 1,000 branches throughout the country.
Circulo K said the deals makes it "one of the main players in the convenience store market in the country".
CEO Carlos Kalach added: "After working intensely for many years in consolidating a successful and productive company in the sector, we are greatly excited about the challenge of doing it at a national level."
The transaction sees Grupo Modelo focus squarely on its core business of producing, distributing, and selling beer.
Ricardo Tadeu, CEO of Grupo Modelo, said: "The negotiation was a success, as both parties reached their objectives. We will continue to develop strong bonds with Circulo K and they will continue to be one of our most important clients."
Clarification: This article has been updated at 09:26 on 13 February. The original article indicated Couche-Tard had acquired the Extra chain. This information was erroneous. just-food apologises for the error.
MEXICO CITY. February 10, 2014. Grupo Modelo (BMV:GMODELO) and Circulo K, announced today that they have reached an agreement whereby Circulo K will acquire the convenience store business that operates under the brand "Extra" from Grupo Modelo.
The transaction will allow Grupo Modelo to focus on its core business of producing, distributing, and selling beer. Ricardo Tadeu, CEO of Grupo Modelo, commented: "The negotiation was a success, as both parties reached their objectives. We will continue to develop strong bonds with Circulo K and they will continue to be one of
our most important clients."
With the transaction, Circulo K becomes one of the main players in the convenience store market in the country, with the possibility of taking advantage of Extra stores' platform to extend their growth across the country.
Carlos Kalach, CEO of Circulo K commented: "After working intensely for many years in consolidating a successful and productive company in the sector, we are greatly excited about the challenge of doing it at a national level."
The transaction is subject to the approval of the Mexico's Federal Competition
Commission. Terms of the agreement have not been disclosed.
Original source: Grupo Modelo
Alimentation Couche-Tard Inc. (ATD.B) - Financial and Strategic SWOT Analysis Review provides you an in-depth strategic SWOT analysis of the company’s businesses and operations. The profile has been c...
Introduction Food Retail in Canada industry profile provides top-line qualitative and quantitative summary information including: market size (value 2009-13, and forecast to 2018). The prof......
In 2013, grocery retailers showed healthy growth over the previous year despite declining consumer spending, increasing competition due to new entrants, rising square footage in comparison to populat...
Business Monitor International's Canada Food and Drink Report provides industry professionals and strategists, corporate analysts, food and drink associations, government departments and regulatory bo...
- How brands are eyeing their own retail presence
- Why Lactalis could move for Dairy Crest
- Who could swoop for Diamond Foods?
- The consistent inconsistency of European promos
- Indonesia – How ice cream makers can drive volumes
- Nestle, R&R Ice Cream in joint venture talks
- How the food industry is reacting to TPP
- Mondelez 'preparing to sell European cheese unit'
- China implements new safety regulations
- Unilever acquires Italian gelato group Grom
- Management briefing: just-food’s industry outlook for 2015
- Global Savory Snacks Market: Merger and Acquisitions August 2015
- Danone SA : Consumer Packaged Goods - Company Profile, SWOT & Financial Analysis
- E-Grocery Market in India - Market Research 2015-2019
- Food and Beverage Coding and Marking Equipment: Market Outlook 2015-2019