Amazon to buy Whole Foods for $13.7bn in all-cash deal

https://www.rt.com/business/392574-amazon-whole-foods-billion-deal/

Amazon has announced plans to acquire leading US organic food grocer Whole Foods Market for $13.7 billion. The e-commerce giant is making a huge bet on physical stores and the business of food.

In a deal that is set to be sealed in the second half of the year, Amazon will pay $42 per share in cash for the upmarket grocery chain.

On Thursday, Whole Foods shares were halted at $32.77 in premarket trading, while Amazon’s shares were up 0.5 percent at $969.

Whole Foods’ co-founder and chief executive officer John Mackey will continue to run the chain with the headquarters of the company to remain in Austin, Texas, the companies said.

Whole Foods has been put under pressure by Jana Partners, one of the investors, and money manager Neuberger Berman. They criticized the company for poor performance and suggested the chain be sold.

“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,” said Mackey in a statement.

This is Amazon’s second attempt to take over the grocery chain, according to a source familiar with the situation, as quoted by Bloomberg.

“Amazon clearly wants to be in grocery, clearly believes a physical presence gives them an advantage. I assume the physical presence gives them the ability to distribute other products more locally. So theoretically you could get five-minute delivery,” said Michael Pachter, an analyst at Wedbush Securities Inc.

http://money.cnn.com/2017/06/18/technology/culture/jeff-bezos-bill-gates-richest/index.html

Bezos is now worth about $84.6 billion total, leaving him just $5 billion shy of overtaking Gates as the wealthiest person in the world.

He has a good shot. Bezos, 53, is focused on aggressively expanding Amazon, while Gates, 61, wants to give most of his money away.

Gates created the Giving Pledge with investing guru Warren Buffett — the fourth wealthiest person with $76.8 billion — in 2010.

———-

the rise of the amazon, technocratic, bezos conglomerate continues..this time with food..

Amazon clearly wants to be in grocery, clearly believes a physical presence gives them an advantage. I assume the physical presence gives them the ability to distribute other products more locally. So theoretically you could get five-minute delivery,”

nearly the richest fool on the planet..

“Bezos is now worth about $84.6 billion total, leaving him just $5 billion shy of overtaking Gates as the wealthiest person in the world.”

401

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~ by seeker401 on June 20, 2017.

2 Responses to “Amazon to buy Whole Foods for $13.7bn in all-cash deal”

  1. Speculation grows that Amazon will face a rival bidder for Whole Foods

    http://www.latimes.com/business/la-fi-wholefoods-stock-bidding-20170619-story.html

  2. https://jonrappoport.wordpress.com/2017/06/19/buy-your-food-from-the-cia-amazon-buys-whole-foods/

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