Amazon is among the biggest name when it comes to the world of e-tail. The company has been taking major footsteps towards bigger things. There were recent rumors that Amazon is all set to make a major acquisition. However, it was rumored that Amazon plans to acquire Slack. Today, Amazon surprised everyone as the news broke that Amazon is going to buy Whole Foods for $13.7 Billion.
Groceries have been something that Amazon has always had their eye on. The company has been experimenting with various forms of physical store setups, as well as grocery services across various regions. This purchase of Whole Foods seems like another step in that direction. This deal has taken place as an all-cash deal, with the valuation taking place at $42 per share. This is a good deal for Whole Foods as the last closing value for their shares was $33.
Amazon’s acquisition of Whole Foods is expected to finish by the end of this year. The company won’t be affected and Amazon will continue running Whole Foods under the original brand name. The current CEO will continue managing the company. This is a strategic purchase for Amazon, as there are over 400 stores all over the US. There are a couple of stores which have an international presence in the UK and Canada.
CEO John Mackey said: “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.” Amazon has a lot to look forward to with these physical stores owned by them now. You might soon be able to order groceries from these stores via Amazon Echo, and what more, a drone might even deliver them to you. Ah, one can dream. Stay tuned with us for more updates.
