Amazon acquires Whole Foods Market
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Picture: Whole Foods Market in Washington D.C.
On June 16 the US based companies Amazon (Seattle) and Whole Foods Market (Austin) annouced that they have entered into a definitive merger agreement. Amazon will acquire Whole Foods Market for approximately $13.7 billion. The online giant Amazon ranked #2 on Fortune’s 2017 list of World’s Most Admired Companies offers $42 per share including Whole Foods Market’s net debt of $3.1bn, explains an Amazon/ Whole Foods press release last Friday.
Amazon´s Goodbye to 100% online trading
The takeover of Whole Foods is a turning point in retail, say experts. Amazon says goodbye to pure online trading and that caused a price drop at the competitors Kroger and Walmart. Apparently, Amazon CEO Jeff Bezos has a plan to redesign the retail trade - but no one knows yet exactly what he's up to. A trade concept for the future? The influence this development will have is not yet foreseeable, say specialists.
Whole Foods Market the leading natural and organic foods supermarket, with more than 460 stores in the United States, Canada, and the United Kingdom. had sales of approximately $16 billion in fiscal year 2016. The company employs approximately 87,000 team members and has been ranked for 20 consecutive years as one of the “100 Best Companies to Work For” in America by Fortune magazine and ranks #28 at the Fortune’s 2017 list of World’s Most Admired Companies. Whole Foods Market was founded in 1978 in Austin, Texas, by John Mackey, co-founder and CEO.
Picture: Whole Foods Market in San Francisco
Brand and concept will remain
Mackey explains that „millions of people love Whole Foods Market and that „the partnership presents an opportunity to maximize value for Whole Foods Market’s shareholders“. He adds that is is at the same time an opportunity to „extending the mission and bringing the highest quality, experience, convenience and innovation to our customers.” The company will continue to operate stores under the Whole Foods Market brand and source from trusted vendors and partners around the world. John Mackey will remain as CEO of Whole Foods Market and the headquarters will stay in Austin, Texas.
Completion of the transaction is subject to approval by Whole Foods Market's shareholders, regulatory approvals and other customary closing conditions. The parties expect to close the transaction during the second half of 2017. Amazon (NASDAQ:AMZN) and Whole Foods Market, Inc. (NASDAQ:WFM)
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