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Delek (DK) to Sell Its Retail Business to Mexican Conglomerate
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Delek U.S. Holdings, Inc. (DK - Free Report) has inked an agreement to sell its retail business, Delek US Retail, to FEMSA (FMX - Free Report) for a total consideration of $385 million. Per the terms of the agreement, a subsidiary of FEMSA will acquire 100% of the equity interests in the subsidiaries that operate Delek’s retail business. The total purchase price includes inventories as well.
FEMSA, one of the largest conglomerates based out of Mexico, operates in more than 17 countries. FMX operates OXXO through its Proximity & Health Division. OXXO is the operator of the largest small-format proximity stores in the Americas. It runs more than 22,800 stores in different countries, including Mexico, Colombia, Chile, Peru and Brazil.
FEMSA stated that it has been eyeing the U.S. convenience and mobility industry since a long time, and this transaction serves as its entry point into the compelling market. FEMSA has focused on expanding its operations in Mexico for more than 45 years.
Over time, the company reached several other countries in South America and Europe. It has stores spread across 30,000 locations. Delek looks forward to stepping into the U.S. market through this transaction.
DK is one of the largest convenience store chains that operates primarily in the southwestern United States. The company owns 249 corporate stores and runs them under the DK brand.
Delek stated that the sale of its retail business, Delek US Retail, to FEMSA is part of its commitment to maximize its value. The company is looking forward to forming a partnership with the Mexican conglomerate in both the short and long term.
DK highlighted that the sale of Delek US Retail to FEMSA should provide it with a competitive partner for increasing its retail fuel sales. The company expressed its satisfaction with the transaction and mentioned that it plans to take further steps to maximize value for its stakeholders.
Zacks Rank and Key Picks
Currently, DK has a Zacks Rank #4 (Sell) whereas FMX carries a Zacks Rank #3 (Hold).
SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
VAALCO Energyis an independent energy company involved in upstream operation business with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.
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Delek (DK) to Sell Its Retail Business to Mexican Conglomerate
Delek U.S. Holdings, Inc. (DK - Free Report) has inked an agreement to sell its retail business, Delek US Retail, to FEMSA (FMX - Free Report) for a total consideration of $385 million. Per the terms of the agreement, a subsidiary of FEMSA will acquire 100% of the equity interests in the subsidiaries that operate Delek’s retail business. The total purchase price includes inventories as well.
FEMSA, one of the largest conglomerates based out of Mexico, operates in more than 17 countries. FMX operates OXXO through its Proximity & Health Division. OXXO is the operator of the largest small-format proximity stores in the Americas. It runs more than 22,800 stores in different countries, including Mexico, Colombia, Chile, Peru and Brazil.
FEMSA stated that it has been eyeing the U.S. convenience and mobility industry since a long time, and this transaction serves as its entry point into the compelling market. FEMSA has focused on expanding its operations in Mexico for more than 45 years.
Over time, the company reached several other countries in South America and Europe. It has stores spread across 30,000 locations. Delek looks forward to stepping into the U.S. market through this transaction.
DK is one of the largest convenience store chains that operates primarily in the southwestern United States. The company owns 249 corporate stores and runs them under the DK brand.
Delek stated that the sale of its retail business, Delek US Retail, to FEMSA is part of its commitment to maximize its value. The company is looking forward to forming a partnership with the Mexican conglomerate in both the short and long term.
DK highlighted that the sale of Delek US Retail to FEMSA should provide it with a competitive partner for increasing its retail fuel sales. The company expressed its satisfaction with the transaction and mentioned that it plans to take further steps to maximize value for its stakeholders.
Zacks Rank and Key Picks
Currently, DK has a Zacks Rank #4 (Sell) whereas FMX carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energysector areSM Energy (SM - Free Report) and VAALCO Energy (EGY - Free Report) . SM Energy presently sports a Zacks Rank #1 (Strong Buy), while VAALCO Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
VAALCO Energyis an independent energy company involved in upstream operation business with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.