Navigation
Suscribe
Menu Search Facebook Twitter
Search Close
Menu ALL SECTIONS
  • Capital Coahuila
  • Capital Hidalgo
  • Capital Jalisco
  • Capital Morelos
  • Capital Oaxaca
  • Capital Puebla
  • Capital Quintana Roo
  • Capital Querétaro
  • Capital Veracruz
  • Capital México
  • Capital Michoacán
  • Capital Mujer
  • Reporte Índigo
  • Estadio Deportes
  • The News
  • Efekto
  • Diario DF
  • Capital Edo. de Méx.
  • Green TV
  • Revista Cambio
Radio Capital
Pirata FM
Capital Máxima
Capital FM
Digital
Prensa
Radio
TV
X
Newsletter
Facebook Twitter
X Welcome! Subscribe to our newsletter and receive news, data, statistical and exclusive promotions for subscribers
Business

Whole Foods Shareholders Say Yes to Amazon Deal

Amazon will get more than 460 Whole Foods stores and potentially very lucrative data about how shoppers behave offline

In this Friday, June 16, 2017, file photo, groceries from Whole Foods Market sit in a cart before being loaded into a car, outside a store in Jackson, Mississippi, photo: AP/Rogelio V. Solis, File
4 months ago

NEW YORK – Whole Foods shareholders voted Wednesday to bless a $13.7 billion union with Amazon that the organic grocery chain’s CEO had called “love at first sight.”

That approval is one step required to close the deal, which is a bold move into physical stores for Amazon and has the possibility of bringing big changes to the supermarket industry and how people order groceries online.

By buying Whole Foods, Amazon will get more than 460 stores and potentially very lucrative data about how shoppers behave offline.

The deal also needs the go-ahead from government regulators. A union that represents food-industry workers has asked the Federal Trade Commission to scrutinize the deal closely, saying that it could hurt competition and lead to job cuts. Regulators tend to block deals when two direct competitors are combining, and Amazon — despite its dominance in the online marketplace — doesn’t currently have a big groceries business.


In the meantime, rivals are scrambling to catch up with the e-commerce giant. Walmart, which has the largest share of the U.S. grocery market, is expanding its grocery delivery service with ride-hailing service Uber and announced Wednesday that it will join forces with Google to let shoppers order goods by voice on Google devices.

The deal may also breathe new life into Whole Foods, which had been under intense shareholder pressure to improve results and retain customers who have more choices about where to get natural foods. As Whole Foods grew, more supermarkets offered similar organic and natural foods, but at cheaper prices.


Amazon and Whole Foods have not given many details about what might change for customers, though Whole Foods CEO John Mackey gave some general clues at a town hall with employees after the deal was announced. He said he thought Amazon would help with efforts on cost-cutting and a loyalty program. He noted Amazon is known for its innovation and said that company could turn Whole Foods from “the class dunce” to “valedictorian.”

Mackey had said the deal came about after a “whirlwind courtship” and that “it was truly love at first sight.”

As part of the deal, Amazon will pay Whole Foods shareholders $42 for each share they own. That was an 18 percent premium from its stock price the day before the tie-up was announced on June 16. Shares of Whole Foods Market Inc. were trading at $41.70 on Wednesday.

Earlier this month, Amazon.com Inc. sold $16 billion of bonds in order to pay for Whole Foods. Seattle-based Amazon has said it expects the deal to close before the end of the year.

Comments Whatsapp Twitter Facebook Share
More From The News
Latest News

Democrat Jones wins stunning red-state A ...

3 days ago
Business

Asian stocks mixed ahead of Fed rate ann ...

3 days ago
Entertainment

NFL Network suspends analysts over sexua ...

3 days ago
Business

Minnesota announces restrictions on usin ...

3 days ago
Most Popular

Patricia Espinosa Opens Mexico Conferenc ...

By The Associated Press
Business

French PM says Disputed Labour Bill Open ...

By The Associated Press
Business

White House Steps Up Aid for Financially ...

By The Associated Press
Business

How Apple's 'Security Czars' Fight to Pr ...

By Reuters
Business

Thousands of Jobs at Risk as India's Tat ...

By Reuters
Business