SECURITIES AND
EXCHANGE COMMISSION
WASHINGTON,
DC 20549
FORM 6-K
REPORT OF FOREIGN
PRIVATE ISSUER
PURSUANT TO
RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES
EXCHANGE ACT OF 1934
For the month
of August 2019
FOMENTO
ECONÓMICO MEXICANO, S.A.B. DE C.V.
(Exact name
of Registrant as specified in its charter)
Mexican
Economic Development, Inc.
(Translation
of Registrant’s name into English)
United Mexican
States
(Jurisdiction
of incorporation or organization)
General Anaya
No. 601 Pte.
Colonia Bella Vista
Monterrey, Nuevo León 64410
México
(Address of
principal executive offices)
Indicate by
check mark whether the registrant files or will file annual reports
under cover
of Form 20-F or Form 40-F:
Form 20-F
x
Form 40-F
¨
Indicate by
check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): _______
Indicate by
check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): _______
Indicate by
check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information
to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes
¨
No
x
If "Yes"
is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-_____________
FEMSA
Comercio enters Convenience sector in Brazil through Joint Venture with Raízen
Monterrey,
Mexico, August 6, 2019 —
Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA”) (NYSE: FMX; BMV: FEMSAUBD)
announced today that it has reached an agreement to enter into a 50-50 Joint Venture with Raízen. Through this agreement,
FEMSA Comercio will acquire a 50% interest in Raízen Conveniências. The full Enterprise Value of Raízen Conveniências
for the purpose of this transaction is R$1,122 Million, free of any debt or cash, and FEMSA Comercio’s 50% interest is therefore
valued at R$561 Million.
Raízen
itself is a 50-50 Joint Venture between Cosan and Shell. Raízen currently operates more than 6,200 Shell service stations
in Brazil, and approximately one thousand of them have a Select brand convenience store today. The stores are franchised or licensed
by Raízen to independent operators. The Joint Venture agreed upon today is limited to the convenience store business and
excludes the fuel service station operations.
The transaction
announced today will create a powerful platform for future growth. Raízen contributes its broad service station footprint,
where current penetration of convenience stores is still low, and its vast experience operating in Brazil. FEMSA Comercio will
bring to bear its considerable expertise as a developer and operator of small-format proximity and convenience stores. Potential
growth avenues include increasing penetration of Select convenience stores at Raízen service stations, as well as developing
successful value propositions for stand-alone stores under the OXXO brand.
Daniel Rodríguez
Cofre, FEMSA Comercio’s CEO, commented:
“We
have been looking at Brazil as a compelling market for small-format retail for a long time. The transaction announced today combines
the right asset and the right partner for us, with the right structure and the right timing. We welcome the opportunity to join
forces with a world-class company like Raízen, and we are excited by the potential and the challenge that this new venture
represents for FEMSA Comercio.”
The transaction
is subject to customary regulatory approvals and is expected to close during the second half of 2019.
####
About FEMSA
Comercio
FEMSA Comercio
is a company that creates economic and social value in the countries where it has presence. It operates different small-format
store chains in Mexico, Colombia, Chile, Peru and Ecuador, among which there are OXXO proximity stores, drugstores under the brands
YZA, Farmacon, Moderna, Cruz Verde, Fybeca and SanaSana, and Maicao beauty stores. It also operates service stations in Mexico
under the OXXO GAS brand. Through its business units, FEMSA Comercio has more than 180,000 employees and serves more than 13 million
consumers every day.
About FEMSA
FEMSA is a
company that creates economic and social value through companies and institutions and strives to be the best employer and neighbor
to the communities in which it operates. It participates in the retail industry through FEMSA Comercio, comprising a Proximity
Division operating OXXO, a small-format store chain, a Health Division, which includes drugstores and related activities, and
a Fuel Division, which operates the OXXO GAS chain of retail service stations. In the beverage industry, it participates through
Coca-Cola FEMSA, a public bottler of Coca-Cola products; and in the beer industry, as a shareholder of HEINEKEN, a brewer with
operations in over 70 countries. Additionally, through its Strategic Businesses unit, it provides logistics, point-of-sale refrigeration
solutions and plastics solutions to FEMSA's business units and third-party clients. Through its business units, FEMSA has more
than 295,000 employees in 13 countries. FEMSA is a member of the Dow Jones Sustainability MILA Pacific Alliance, the FTSE4Good
Emerging Index and the Mexican Stock Exchange Sustainability Index, among other indexes that evaluate is sustainability performance.
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August 6, 2019
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SIGNATURES
Pursuant to
the requirements of the Securities Exchange Act of 1934, the
registrant has
duly caused this report to be signed on its behalf of the
undersigned,
thereunto duly authorized.
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FOMENTO ECONÓMICO
MEXICANO, S.A. DE C.V
.
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By:
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/s/
Gerardo Estrada Attolini
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Gerardo Estrada Attolini
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Director of Corporate Finance
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Date: August 6, 2019
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