Online retail giant Amazon and American supermarket chain Whole Foods Market recently announced that they have entered into a definitive merger agreement under which Amazon will acquire Whole Foods Market for US$42 per share in an all-cash transaction valued at approximately US$13.7 billion.
“Millions of people love Whole Foods Market because they offer the best natural and organic foods, and they make it fun to eat healthy,” said Amazon’s founder and CEO Jeff Bezos. “Whole Foods Market has been satisfying, delighting and nourishing customers for nearly four decades – they’re doing an amazing job and we want that to continue.”
John Mackey, co-founder and CEO, Whole Foods Market, added: “This partnership presents an opportunity to maximise 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.”
Whole Foods Market will continue to operate stores under the Whole Foods Market brand and Mackey will remain as CEO of Whole Foods Market. Its headquarters will stay in Austin, Texas in the US.
Completion of the transaction is subject to approval by Whole Foods Market’s shareholders, regulatory approvals and other customary closing conditions. The parties expect to close the transaction during the second half of 2017.
Whole Foods Market is ranked #28 and Amazon ranked second on Fortune’s 2017 list of World’s Most Admired Companies.