Don't miss

Replay


LATEST SHOWS

EYE ON AFRICA

Kenya’s opposition files a petition against presidential vote

Read more

MEDIAWATCH

'Siempre vida Barcelona'

Read more

THE DEBATE

Spain attacks - Can Europe prepare for vehicle-ramming terror attacks?

Read more

EYE ON AFRICA

Measures in place to prevent Grace Mugabe leaving South Africa

Read more

IN THE PAPERS

Terror in Barcelona

Read more

BUSINESS DAILY

Terror attack, Trump turmoil rattle stock markets

Read more

FRENCH CONNECTIONS

Malbouffe: understanding junk food à la française

Read more

IN THE PAPERS

Lebanon repeals 'rape law', but activists say more is needed to protect women

Read more

BUSINESS DAILY

US business leaders abandon Trump after Charlottesville

Read more

Business

Amazon to buy groceries giant Whole Foods for $13.7 billion

© Joe Raedle, GETTY | Picture shows a Whole Foods sign in Miami, Florida on May 9, 2017

Text by NEWS WIRES

Latest update : 2017-06-16

Online 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.

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 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 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 deal is expected to close in the second half of 2017.

(AP)

Date created : 2017-06-16

  • FRANCE

    French bakers warn croissants under threat from soaring butter prices

    Read more

  • FRANCE - USA

    French boulanger Kayser breaks new ground in US

    Read more

  • GASTRONOMY

    NY's Eleven Madison Park takes top prize on '50 Best Restaurants'

    Read more

COMMENT(S)