Amazon Buying Whole Foods

Amazon has recently announced that it is buying one of the America’s renowned supermarket chain, Whole Foods. As per the merger agreement, Amazon will acquire Whole Foods for $42 per share, including the net debt of the Whole Foods Market. The total value of the deal would be approximately 13.7 billion.
Amazon has been trying to open brick and mortar stores for quite a long time, and it has been reported time-to-time that the company is exploring opportunities to hit the ground with physical stores. Now, this new acquisition has fulfilled the objective very well.
The key points of the merger agreement are as following –
  • Amazon will make an all-cash transaction for this acquisition.
  • The stores will continue to operate under Whole Foods brand name.
  • The merger is expected to take place later this year, after the approval by regulators and the supermarket’s shareholders.
  • The headquarters of Whole Foods will remain in Austin, Texas.
  • Company’s CEO, John Mackey, will remain in his post.
In the statement, Jeff Bezos, the founder of Amazon, 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 in a statement. Whole Foods Market has been satisfying, delighting and nourishing customers for nearly four decades — they’re doing an amazing job and we want that to continue.”
While the Whole Foods CEO, John Mackey stated,
“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.”
Now that the dream of the online shopping empire has got solid grounds, It will be interesting to see how Amazon deals with the long physical queues of irritated customers.