Amazon announced today it plans to acquire Whole Foods Market for $42 a share. A deal valued at $13.7 billion!
Whole Foods’ John Mackey will remain CEO of the grocery store chain after the deal closes, and the store will continue to operate under the Whole Foods brand. Amazon’s offer represents a 27% increase to Whole Foods’ closing price yesterday. Mackey said,
“This partnership presents an opportunity to maximize value for Whole Foods Market’s shareholders, while at the same time extending our mission and bringing the highest quality, experience, convenience and innovation to our customers.“
Online has been the next frontier for the grocery business but very few people buy their groceries online. Shares of Amazon were up about 3% following the news and news sent other grocery stocks reeling.
Online groceries, kids. It’s happening, but I’d rather order Trader Joe’s, myself. (via CNBC)