Amazon Bets Big on Organic by Buying Whole Foods

The online retail giant Amazon will acquire Whole Foods Market. The two companies announced last week that they entered into a merger agreement where Amazon will acquire Whole Foods for $42 per share, according to an SEC filing, or about $13.7 billion.

Read about reasons to eat organic food

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

John Mackey, Whole Foods co-founder and CEO, said in a statement that the partnership with Amazon “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.”

Whole Foods will continue to operate under the same name and source from the same vendors and partners. John Mackey will remain as CEO and the headquarters will stay in Austin, Texas. The transaction will be subject to approval by Whole Foods’ shareholder and regulatory approvals, and it is expected to close during the second half of 2017.

Whole Foods shares increased by 29 percent on Friday and by 1.3 percent on Monday. Reuters reported that the rise of the shares reflect “hopes the company might fetch a higher price.” Amazon shares also increased by 1.4 percent by Monday. The announcement caused the stocks of traditional grocery store chains to plummet. Walmart and Target shares also were down, as were shares of food companies, including Hershey and Campbell Soup.

CNN Money reported that Amazon acquiring Whole Foods could be disruptive to the grocery industry like it is for brick-and-mortar businesses. Neil Saunders, managing director of GlobalData Retail, said that “the deal is potentially terrifying” for grocery store companies.

Read about Whole Foods Market and GMO labeling

Do you think this is good news? Let us know in the comments below.

By Gina-Marie Cheeseman| June 19, 2017
Categories:  Live

About the Author

Gina-Marie Cheeseman

Gina-Marie Cheeseman

Gina-Marie is a freelance writer armed with a passion for healthy living and a degree in journalism. Hailing from the dry, sunny Central San Joaquin Valley, she hasn't let the heat fry her brain!

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