Amazon to Acquire Whole Foods Market for $13.7 Billion

Amazon to buy Whole Foods Market in deal valued at $13.7 billion

Amazon to buy Whole Foods Market in deal valued at $13.7 billion

Amazon is buying Whole Foods Market, for $42 per share in a deal that values the grocery outlet at $US13.7 billion.

The deal represents a dramatic turn in strategy for Amazon, which has offered food delivery through its AmazonFresh service for a decade, but has not made a major dent in the $700bn grocery market.

The "implications ripple far beyond the food segment, where dominant players like Walmart, Kroger, Costco, and Target now have to look over their shoulders at the Amazon train coming down the tracks", O'Shea said.

"Millions of people love Whole Foods Market because they offer the best natural and organic foods, and they make it fun to eat healthy", Amazon CEO Jeff Bezos said in a statement.

The Journal said buying Whole Foods allows Amazon to quickly grab a bigger portion of the estimated $674 billion USA market for edible groceries, according to consulting firm Kantar Retail. Others say the growing options are intriguing with Amazon buying Whole Foods Market.

The relationship between Instacart and Whole Foods dates back to 2014 but deepened in 2016, when they announced a new five year deal.

The Whole Foods Market in Midtown New York is seen on June 16, 2017.

Wal-Mart Stores Inc said on Friday it would buy online men's fashion retailer Bonobos Inc for $310 million, in its fourth e-commerce deal in under a year, as it seeks to bridge the gap with e-commerce leader Amazon.com Inc.

Trump lawyer defends his use of social media
"The MAKE AMERICA GREAT AGAIN agenda is doing very well despite the distraction of the Witch Hunt", Trump tweeted on Sunday. SEKULOW: Well, look, I - I can't imagine the scenario where the president would - would not be aware of it.

Amazon also has been testing automation technology at a Seattle convenience store that's now open only to Amazon employees. On Friday it soared $9.62, or 29 percent, to $42.68, above the $42 a share Amazon agreed to pay.

Whole Foods will keep its headquarters in Austin and continue to operate under the Whole Foods brand with John Mackey remaining as CEO.

"It is hard to say what Amazon's online strategy will be for Whole Foods", she said.

In Whole Foods, it is acquiring a company that has recently come under pressure from investors for its lagging performance. Whole Foods, whose fleet of stores now numbers more than 430 locations, has found it hard to attract more mainstream consumers as Walmart and other large chains have stepped up their sales of natural and organic products. State Street and Fidelity both have a substantial amount of shares in Whole Foods, as BBJ reported. "The checkout-free experience in Go is not yet ready for prime-time as it is still only being beta-tested by AMZN employees, but we believe the Go technology could be rolled out to physical retail, including Whole Foods, over time".

Amazon is a beast in the world of online retailers.

Shares of iconic food-staple companies also took a hit.

"I think we will be a bell-weather for what will happen around the country", said Ed Fox, marketing professor at the Southern Methodist University Cox School of Business.

The acquisition comes just days after Mackey, in an interview with Texas Monthly magazine, called activist investor Jana Partners "greedy bastards", and accused Jana of trying to make money by forcing Whole Foods to sell itself.

Recommended News

  • Grenfell Tower relief effort has been effective, insists council leader

    Grenfell Tower relief effort has been effective, insists council leader

    Officials are using dental records, fingerprints, DNA samples, tattoos and scars to try and positively identify victims. The 91-year-old monarch said it is "difficult to escape a very somber mood" on what is normally a day of celebration.
    NEET 2017 result likely to be declared by the CBSE today

    NEET 2017 result likely to be declared by the CBSE today

    The results.gov.in made an official update and announced that CBSE NEET Result will be declared today without mentioning any time. A total of 11,38,890 students registered for this examination including 1522 NRIs, 480 OCIs, 70 PIOs and 613 Foreigners.
    Russian Federation  threatens USA  aircraft, cuts hotline

    Russian Federation threatens USA aircraft, cuts hotline

    The announcement comes as tensions escalate following the USA downing of a Syrian military jet near Raqqa yesterday. A "hotline" for Russian and US military officials to talk about activity within the zones was established in 2015 .
  • Sixers in position to grab Markelle Fultz with No

    Sixers in position to grab Markelle Fultz with No

    Celtics fans have been leery about moving back, particularly with all the buzz about likely No. 1 pick Markelle Fultz . With an additional pick in 2018 or 2019 as well, the cupboard continues to be stocked in Boston.
    Scalise upgraded to serious condition after more surgery

    Scalise upgraded to serious condition after more surgery

    The bullet entered Scalise's left hip and tore across his pelvis, cracking bones and injuring organs and blood vessels. Sava said that after being released from the hospital, Scalise "will require a period of healing and rehabilitation".
    We all pay for hospital charity care -- Regina Vidaver

    We all pay for hospital charity care -- Regina Vidaver

    Doing so would "help patients know what they're getting into" and "would also allow for. more competition", Casper said. This bill, now in the Senate, is opposed by leading medical organizations such as the American Academy of Pediatrics.
  • Portugal forest fire: What we know

    Portugal forest fire: What we know

    Authorities say that altogether 135 people were treated as a result of the blaze, including 13 firefighters and one soldier. Firefighters were continuing a grim search for bodies, with Costa warning on Sunday that the death toll could still rise.
    Perez to remain as Real Madrid president until 2021

    Perez to remain as Real Madrid president until 2021

    He was presented at the Bernabeu in front of 80,000 fans, as Perez attempted to bring together a second group of "Galacticos". The Portuguese global is now in Russian Federation competing for the European champions in the Confederations Cup.
    Congress leader recommends Guinness Record for Shiv Sena for issuing most threats

    Congress leader recommends Guinness Record for Shiv Sena for issuing most threats

    The Sena's first preference was RSS chief Mohan Bhagwat .After Bhagwat ruled himself out, it pitched scientist MS Swaminathan. Speaking at an "opinion-makers meet" attended by with a select group of city residents from various sectors on Sunday, Mr.
  • Ward stuns Kovalev in eighth to defend titles

    Ward stuns Kovalev in eighth to defend titles

    The fight seemed to be going the way of Ward , the superior athlete, the better conditioned athlete, the unflappable presence. Regardless of the Kovalev camp trying to stir a controversy over the borderline shots, Ward was the deserved victor .
    Ireland's first gay prime minister Leo Varadkar formally elected

    Ireland's first gay prime minister Leo Varadkar formally elected

    Paying tribute to Mr Kenny, Mr Varadkar said: "I have no doubt, only for him, this country as we know it would not be here today". In 2015 , Varadkar said his sexuality, like his ethnicity, "is not something that defines me".
    House Dems question Flynn disclosures of Middle East travel

    House Dems question Flynn disclosures of Middle East travel

    Three speakers' bureaus that worked with Flynn said they had not been involved in the trip, the two Democrats said. Flynn was also involved in talks "with [Egyptian President Abdel Fattah] el-Sissi's government", Cochran said.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.