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Whole Foods: I Guess Those Amazon Rumors Weren't Rumors


Whole Foods Market (WFM) has agreed to be bought for nearly $14 billion to Amazon.com (AMZN).

BP-AA414_WFM201_D_20170522113309.jpgGetty Images

Amazon was rumored to be exploring a Whole Foods acquisition back in April, and Jana Partners had been pushing for a sale. And now that sale is actually happening.

The Wall Street Journal'sAusten Huffordhas the details :

Amazon.com Inc. said it would buy Whole Foods Market for $13.7 billion as the giant internet retailer makes a deeper push into the grocery space.

Amazon will pay $42 a share for Whole Foods, valuing the grocer at a 27% premium to its closing price Thursday. The deal is expected to close in the second half of this year.

No surprise here, other grocers are dropping. Shares of Kroger (KR), which was already feeling competitive pressure, have tumbled 11% to $21.90, while Sprouts Farmers Market (SFM) has dropped 7.9% to $20.65. Even Wal-Mart Stores (WMT) is feeling the pressure: Its shares are off 4.6% to $75.28.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , US Markets


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