Amazon Buys Whole Foods

Amazon to Acquire Whole Foods for $13.7b

"Dominant players like Walmart, Kroger, Costco and Target now have to look over their shoulders at the Amazon train coming down the tracks", said Moody's lead retail analyst Charlie O'Shea.

In the United Kingdom, where there are Whole Foods stores, sell-offs wiped out almost $2billion (£1.5billion) from the value of stocks at grocers Tesco, Sainsbury's and Marks & Spencer, according to This Is Money. The deal is estimated to be worth almost $13.7 billion, at $42 per share.

'As Amazon enters the grocery market proper, it will put a lot more pressure on existing grocers, ' Neil Saunders, managing director of the research firm Global Data Retail, told the AP. But in the case of Amazon's (AMZN) planned $13.7 billion acquisition of Whole Foods (WFM), those terms are no exaggeration. As more and more grocery stores have begun offering organic produce, Whole Foods is no longer people's only option. The agreement includes assumption of Whole Foods' net debt.

The AP reported that Campbell Soup, Hormel, General Mills and Sysco shares fell between 3.2 and 3.3 percent, while United Natural Foods shares dropped 8.6 percent. For example, when it comes to buying fresh food, we like to feel, see and touch the fruits and vegetables we're buying.

Amazon has been eyeing stores that could allow traditional in-store purchases, online ordering with on-site pickup and home delivery, using the stores' warehouses as distribution points. When Jana Partners LLC in April said it had raised its stake in Whole Foods in April and pushed for a sale of the company, Whole Foods interviewed several investment banks to hire an adviser to help defend against the activist hedge fund.

Amazon "will likely utilize Whole Foods' existing infrastructure to shake up the brick-and-mortar market", she said, "while taking advantage of its supply chain to make the online side of the business more cost-effective".

Whole Foods Market will still run physical stores under its own brand so the deal seems more about bringing Amazon's scale and expertise - especially in analytics - to bare.

Читайте также: Global shares fall on Fed rate hike, UK rate outlook

On Friday, Whole Foods stock closed up 9.62 to 42.68 per share, a 29.1 percent jump.

Amazon is sitting on $21.5 billion in cash.

The acquisition could pose a bigger threat to Target, which has been building smaller stores in cities like NY to attract the affluent urban shoppers coveted by Whole Foods and Amazon, said Kurt Jetta, chief executive officer of TABS Analytics, a consumer products research firm.

The Whole Foods deal is expected to close in the second half of 2017, pending shareholder and regulatory approvals.

Yes. The world's largest e-commerce company is now a very substantial brick-and-mortar food retailer. Selling produce online is hard.

Both Amazon and Whole Foods cater to younger consumers including millennials as well as the affluent. And the Whole Foods deal gives Amazon strong industry knowledge, something it knows it's lacking, according to a person with knowledge of the matter. And shoppers may be skittish about having Amazon take over one more element of their shopping experience.

При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
«» 2007 - 2017 Copyright.
Автоматизированное извлечение информации сайта запрещено.

Код для вставки в блог

Related:

  • West Ham ready to abandon interest in Manchester United ace Chris Smalling

    According to reports from The Daily Star , Jose Mourinho has already told Chris Smalling he's no longer part of his plans as Manchester United manager.
    Brexit negotiations to start on June 19

    Brexit negotiations to start on June 19

    Her dalliance with the DUP, an extreme fringe party who only returned 10 MPs to office at the recent election, confirms it. A Conservative Party source said it was time for the government to get on with its business.

    Boris Johnson denies plot to topple UK PM Theresa May

    She'd argued that the elections would give her the boost she needed to have a strong hand in negotiations to leave the EU. They sent a wave of anxiety through Britain and forced May to defend the government's record on fighting terrorism.
  • Secret Service says it doesn't have any Trump tapes

    Secret Service says it doesn't have any Trump tapes

    The Technical Services Division of the Secret Service is charged with sweeping the White House premises for listening devices. The Secret Service's response does not, however, cover any potential recordings made without the agency's knowledge.
    Minnesota officer acquitted in shooting of Philando Castile

    Minnesota officer acquitted in shooting of Philando Castile

    After the verdict, Yanez's attorney, Tom Kelly, said the trial was fair and that "nobody should have an adverse reaction to this". Yanez testified that Castile, a school cafeteria worker, was reaching for his gun despite his commands not to pull it out.
    Trump thrusts US, Cuba back toward hostile relations

    Trump thrusts US, Cuba back toward hostile relations

    As a result, they were often presented with activities and talks favoring Cuba government positions on domestic and global issues. He has tightened some aspects of trade with military-backed business but allowed flights to Cuba and cruise ships to continue .
  • DUP head arrives for talks with UK leader May

    DUP head arrives for talks with UK leader May

    May made clear the Brexit negotiations would begin next despite uncertainty. They can't have it both ways, it has to be dealt with sensibly", she said.

    Britain, EU to begin Brexit negotiations on Monday

    The European Parliament's chief Brexit negotiator has hit out at the "uncertainty" over Theresa May's approach to leaving the EU. Norway is in the single market, in return for accepting free immigration from the EU, EU courts and budget payments.

    US accuses Chinese company of money-laundering for North Korea

    Ruggiero advocates more aggressive measures, including fines on Chinese banks that are used by front companies for North Korea. But it said it opposes interference by other countries.
  • DUP leader returns to Northern Ireland, talks continue

    DUP leader returns to Northern Ireland, talks continue

    Sinn Fein believes that it could win that referendum because of concerns in Northern Ireland about Brexit . The stakes for May are high as lawmakers return for their first day of business Tuesday.
    Brooke Henderson stumbles late, keeps Meijer LPGA lead

    Brooke Henderson stumbles late, keeps Meijer LPGA lead

    On a day when Thailand's Ariya Jutanugarn - in her first tournament as world No. 1 - carded a 70, Henderson had total control. She has a 36-hole lead for the first time since late last September in China in the Reignwood LPGA Classic.
    UK PM May's lead widens ahead of June 8 election - ORB poll

    UK PM May's lead widens ahead of June 8 election - ORB poll

    But Chancellor Philip Hammond warned that Labour would destroy jobs by raising taxes and increasing borrowing. The Prime Minister replied: "No it's not, sir".

Comments

Latest news

PM congratulates Leo Varadkar on assuming office as Taoiseach of Ireland
Shortly before the 2015 same-sex marriage referendum in Ireland he came out as gay during an interview with Irish broadcaster RTE. Minister for Transport, Tourism and Sport Shane Ross is also believed to have met with Varadkar.

Champions Trophy Final: Punters peg India as favorite
With the win, the Men in Blue have entered their fourth Champions Trophy final (twice in 2002, 2013 and 2017). The Champions Trophy final might see "fine and settled conditions persisting", according to forecasters.

McIlroy, Day to miss US Open cut
The Japanese star matched Chez Reavie for the best round of the day , three shots clear of the next best performance by Bill Haas. Marc Leishman has maintained his position high on the leaderboard midway through the second round at the US Open.

Golf's best miss cut leaving crazy logjam at Open
Casey flew the back of the green with his third shot and finding deep rough but could only move his ball some six inches. His total of 154 equaled his worse two-round total at a major, matching his first two rounds at The Open in 2013.

Cosby judge declares mistrial as jury deadlocks again
Dozens of women have come forward to say he drugged and assaulted them, but this was the only case to result in criminal charges. "Rehearing testimony in this case is revictimization for everyone that's been the victim of sexual assault and rape".

Fowler leads US Open
However, he then birdied 17 through to the third and parred out the remainder of his round for a 71 and two round total of 137. He loved Erin Hills, a course with wide fairways between the knee-high fescue that he figured would allow him to attack.

Trump keeps much of Obama's Cuba policy
Trump is also calling for the legalization of all political parties, and free and internationally supervised elections. Cuba says "the last two years have shown that the two countries can cooperate and coexist in a civilized way".

17 dead, public investigation sought in London tower fire
Kai, who was with his mother Jade, then asked: "What are you going to do with people's life?" "Sometimes all that's left is ash". The Government has triggered an emergency fund to help Kensington and Chelsea council meet the cost of the disaster.

'Wonder Woman' buries 'The Mummy' at box office
Rounding out the top five was " Guardians of the Galaxy Vol. 2 ", which nabbed an estimated $6.2 million domestically. Tom Cruise's film failed to beat the first-weekend box office collection of DC's fourth installment " Wonder Woman ".

Rallies against Islamic law draw counter-protests across US
Paul , Minn., state troopers arrested about a half-dozen people when scuffles broke out at the close of a competing demonstration. Nadzku said. "If only they would know what we ourselves know, that we don't even have Shariah in that sense in our own mosques".

Cristiano Ronaldo seeks Real Madrid exit after tax accusations
If Ronaldo does leave, one English media source reported that it could cost a club around £350m in transfer fees and salary. PSG owner Nasser Al-Khelaifi has shown serious interest in buying Ronaldo in the past.

Trump under investigation for obstruction of justice
Brand, on May 22, was sworn in as the first woman to serve as associate attorney general. The morning missive appeared to refer to Rod Rosenstein , the deputy attorney general.

US President Donald Trump blasts report on possible obstruction of justice probe
Trump denied Comey's allegations and said he would be willing to go under oath to give his version of their interactions. EDT. "Nice", Trump wrote on Twitter, later repeating his accusation that the probe is a " witch hunt ".

The wrong kind of US Open history: Top 3 all miss cut
Rory McIlroy is further back on 5-over and will miss the cut after carding a 71 in his second round. It doesn't need to be too much of a change for this golf course to play pretty hard .

UK Government Defends DUP Deal Amid Accusations Of Bias
Restoring devolved government in Belfast could protect Northern Ireland "from the worst effects of that arrangement", she said. London, Belfast, Dublin and Brussels all want to keep the border open, but no agreement has been reached.

Other news