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16 June 2017
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juggernaut Amazon is buying Whole Foods in a deal valued at about $13.7
billion, a strong move to expand its growing reach into groceries. The Total Investment & Insurance
Solutions
Amazon.com Inc. will pay $42 per share for
Whole Foods Market Inc., including debt. That marks an 18 percent premium to
Whole Foods' closing price on Thursday.
The Total Investment & Insurance Solutions
The deal comes a month after Whole Foods
announced a board shake-up and cost-cutting plan amid falling sales. The
grocery store operator was also under pressure from activist investor Jana
Partners.
The grocery chain, known for its organic
options, had been facing increased pressure from rivals, including European
grocery chain Lidl, which is planning to enter the East Coast market, along
with Aldi and Trader Joe's.
Amazon, meanwhile, has been expanding its
reach in goods, services, and entertainment.
Whole Foods will keep operating stores under
its name and John Mackey will as CEO, with headquarters in Austin, Texas. The Total Investment & Insurance
Solutions
The company, founded in 1978, has struggled
to differentiate itself as competitors also now offer a plethora of fresh and
organic foods, and has said customers may be choosing "good enough"
alternatives closer to home. In addition to other natural and organic grocers,
it has cited pressure from restaurant chains, meal-delivery companies and
traditional supermarkets such as Kroger.
The Total Investment & Insurance Solutions
The deal is expected to close in the second
half of 2017.The Total Investment &
Insurance Solutions
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