Amazon Says It Will Buy Whole Foods In $13.7 Billion Deal
Amazon is buying Whole Foods, in a merger that values Whole Foods stock at $42 a share — a premium over the price of around $33 at the close of trading on Thursday. The Internet retailer says it's buying the brick-and-mortar fixture in a deal that's valued at $13.7 billion.
Whole Foods, which opened its first store in Austin, Texas, back in 1980, now has 465 stores in North America and the U.K.
Amazon says that Whole Foods' CEO, co-founder John Mackey, will remain in that role, and that the grocer's headquarters will still be in Austin.
"Whole Foods Market has been satisfying, delighting and nourishing customers for nearly four decades," said Jeff Bezos, Amazon founder and CEO, adding, "they're doing an amazing job and we want that to continue."
The sale, which has not yet been approved by Whole Foods shareholders, is expected to be concluded in the second half of 2017.
In its news release, Amazon says that Whole Foods stores will continue to operate under their own brand and will continue to source products "from trusted vendors and partners around the world."