Saturday, 17 June 2017 19:35

Amazon devours Whole Foods grocery chain for $13.7B, expanding AmazonFresh delivery avenues

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By Mike Wuerthele Friday, June 16, 2017, 08:10 am PT (11:10 am ET)

A blockbuster deal announced Friday morning will see e-commerce giant Amazon buy organic and all-natural food vendor Whole Foods in an all-cash deal —and other retailers and grocers are seeing massive stock drops because of it.

Amazon had already said that Whole Foods stores will continue to operate under the same name, as a discrete division of the company. Whole Foods Chief Executive John Mackey is staying in place, as is the company's headquarters in Austin, Tex.

"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 founder and Chief Executive Jeff Bezos said 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."

A report in December 2016 claimed that Amazon was planning on opening up more than 2,000 self-branded grocery stores. In September 2017, Whole Foods had 456 stores, and 87,000 employees.

The deal gives Whole Foods shareholders a 27 percent price premium, valuing the company at $42 a share.

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SPEEDEE spends his day searching the internet for the information you need to better use your Mac, iPhone, iPad, Apple TV, Apple Watch and all else Apple.

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