UPDATE 1-Mexico's FEMSA sees Oxxo growth, mum on beer unit

* FEMSA sees 850 new Oxxo stores in 2010

* CEO declines to comment on possible sale of beer unit (Recasts first paragraph; adds CEO comments on beer sale, taxes, beer)

MEXICO CITY, Nov 16 (Reuters) - Mexican conglomerate FEMSA said on Monday that it expected strong growth for its convenience store business in 2010, but declined to give any details on the possible sale of its beer unit.

Chief Executive Officer Jose Antonio Fernandez said the company could open 850 new Oxxo convenience stores in 2010, about the same growth pace expected for this year.

"I hope for the same, another 850 (stores)," he told reporters at a event in the Mexican capital.

Monterrey-based FEMSA (FMSAUBD.MX) (FMX.N) disclosed last month that it was in talks about its beer unit.

Sources have told Reuters the company has talked to Britain's SABMiller (SAB.L) -- which analysts see as the most likely acquirer -- and Heineken (HEIN.AS) from the Netherlands.

"I can't say anything," Fernandez told Reuters. "I am bound by a confidentiality agreement."

The potential sale of the beer unit, which market watchers estimate could raise $7.5 billion, would give Mexico's No. 2 brewer new cash to strengthen its Coca-Cola bottling business -- Coca-Cola FEMSA (KOFL.MX)(KOF.N) -- and expand its Oxxo network.

Oxxo entered Colombia earlier this year, and Fernandez did not rule out expanding to new markets in the future. As of the end of September, FEMSA had nearly 7,000 Oxxo stores. (Reporting by Cyntia Barrera Diaz; Editing by Lisa Von Ahn)