Anheuser-Busch Mexican unit Grupo Modelo to sell Extra convenience stores to Circulo K

Mexican brewer Grupo Modelo yesterday said that it would sell its Extra convenience stores in Mexico to Circulo K, a unit of Canada's Alimentation Couche-Tard Inc, one of the largest company-owned convenience store operators in the world with more than 13,000 stores.

The financial terms of the transaction, which includes 878 Extra stores, were not disclosed, and has to be approved by regulators.

Anheuser-Busch InBev SA, the world's biggest brewer, owns Grupo Modelo, which it had taken full control of in 2012 for $20.1 billion. (See: Anheuser-Busch InBev to buy remaining Modelo stake for $20.1 bn)

With the transaction, Circulo K, which has around 150 convenience stores in Mexico, will become the third-largest convenience store operator in the country with more than 1,000 stores.

Fomento Economico Mexicano or Femsa, is the biggest operator of convenience stores in Mexico with 11,210 Oxxo stores followed by 7-Eleven, which has around 1,700 stores.

Carlos Kalach, CEO of Circulo K 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.''

The transaction will allow Grupo Modelo to focus on its core business of producing, distributing, and selling beer. Ricardo Tadeu, CEO of Grupo Modelo, said, ''We will continue to develop strong bonds with Circulo K and they will continue to be one of our most important clients.''

Circulo K began operations in 2006 with the purchase of 15 convenience stores and the Circle K franchise business in the country.