The largest brewing company in Mexico, Grupo Modelo SAB, has hired Bank of America Corp for assistance in selling off its convenience store chain Extra. The engagement was confirmed by sources choosing to remain anonymous with intimate knowledge of the transaction.
Modelo is the brewer for Corona beer and is currently operating 960 Extra stores at the end of 2011. It had already cut the number in half in the past five years starting 2007 with CEO Carlos Fernandez saying that the company would be focusing on profitability.
He added during a conference call with analysts, "We have a lot more competitors coming into the retail side in terms of convenience stores."
Currently, the Mexican brewer is in discussion with Anheuser-Busch InBev for half of Modelo's shares. Settlement discussions are ongoing, suspending the antitrust lawsuit filed by the US Justice Department.
Modelo declined to comment on the sale of its convenience store chain while Bank of America also declined to comment.
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