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Amazon to buy Whole Foods for $13.7 billion

Saturday, June 17, 2017 - 01:13

Amazon's proposed acquisition of Whole Foods is sending shockwaves across the food distribution system. Fred Katayama reports.

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Amazon is buying Whole Foods for $13.7 billion. That $42 per share offer for the upscale supermarket chain is a 27 percent premium on Thursday's closing price. Amazon's stock shot up on the news. Whole Foods Market skyrocketed. With Whole Foods, Amazon is getting 456 brick-and-mortar stores in North America and Britain. Access to Whole Foods' warehouses and stores could mean better deliveries and a better position with which to compete with retail chains such as Kroger, Walmart, and Target. All three stocks as well as other major retailers dropped on the news. 55 Capital market strategist Max Wolff: (SOUNDBITE) MAX WOLFF, MARKET STRATEGIST, 55 CAPITAL (ENGLISH) SAYING: "I think it's a smart move. I think it penetrates Amazon much deeper into, both, luxury, which hasn't always been sort of bread and butter, and into, literally, the bread and butter business, that gets them into about 85 percent of American states, and it gets them a warehouse in most of the nicer neighborhoods, suburban districts in the country." Whole Foods will keep its name, CEO, and headquarters in Austin, Texas. The deal still has to get approved by shareholders and regulators. It's expected to close in the second half of 2017.

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Amazon to buy Whole Foods for $13.7 billion

Saturday, June 17, 2017 - 01:13