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MEXICO CITY – Circulo K, the Mexican division of Circle K, and Grupo Modelo have reached an agreement through which Circle K will purchase the brewer's Extra brand of convenience stores in Mexico.
Circle K will become one of the main players in the Mexican c-store market, and will possibly take advantage of Extra stores' platform to extend their growth across the country, the companies said. "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," said Circulo K CEO Carlos Kalach.
The sale will allow Grupo Modelo to focus on its core business of producing, distributing and selling beer.
"The negotiation was a success, as both parties reached their objectives," said Grupo Modelo CEO Ricardo Tadeu. "We will continue to develop strong bonds with Circulo K and they will continue to be one of our most important clients."
Circle K is a unit of Canada-based Alimentation Couche-Tard.
The transaction is subject to the approval of Mexico's Federal Competition Commission. Terms of the deal were not disclosed.