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
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