UPDATE 1-Raizen, Femsa terminate convenience store partnership in Brazil
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SAO PAULO, Sept 4 (Reuters) - Brazil's Raizen RAIZ4.SA and Mexico's Femsa FEMSAUBD.MX have decided to terminate their partnership established in 2019 through joint venture Grupo Nos, which operated a broad network of convenience stores across Brazil, they said on Thursday.
The agreement comes as sugarcane processor Raizen, one of the world's largest sugar producers and a major fuel distributor, drives a broad divestment strategy in the face of operational challenges and high debt.
As part of the deal, which does not involve any cash consideration, Raizen will receive 1,256 Shell Select and Shell Cafe convenience stores, the Brazilian company said in a securities filing.
Femsa, meanwhile, will get 611 Oxxo stores, a distribution center located in Sao Paulo state, and Grupo Nos' existing debt and cash, it added.
(Reporting by Gabriel Araujo; Editign by Aida Pelaez-Fernandez)
((Gabriel.Araujo2@thomsonreuters.com; +55 11 5047-3352;))