"Whole Foods Market has been satisfying, delighting and nourishing customers for almost four decades - they're doing an incredible job and we want that to continue".
The deal comes a month after Whole Foods announced a board shake-up and cost-cutting plan amid falling sales and pressure from activist investor Jana Partners.
The Amazon-Whole Foods combination could put even more pressure on those chains and other big grocery sellers. Merger mania has produced plenty of deals over the last few decades that haven't unlocked any value for corporate shareholders or strengthened the US economy.
The aquisition means that Amazon will have further expanded their competition with major retailer-grocers such as Wal-Mart and Target, in addition to competing with traditional grocers and pharmacies. "If shoppers are going to allow a company, a retailer, to pick their meat, their produce and their seafood, Whole Foods is probably at the top of the list of retailers with the best reputation across the country".
Ryne Misso of the research firm Market Track said a customer who buys fresh fruit regularly at Whole Foods might be offered a deal on blenders and serving bowls. Just as Walmart is using Bonobos to get access to higher-end consumers and a more technologically savvy way of selling clothes, Amazon is using Whole Foods to get the expertise and physical presence it takes to sell fresh foods. The grocer will continue to operate stores under the Whole Foods Market brand and John Mackey will remain as its chief executive officer, the companies said.More news: Majority of French back Paris Olympic bid
Whole Foods now has an exclusive delivery arrangement with Instacart which isn't due to expire for several more years. State Street and Fidelity both have a substantial amount of shares in Whole Foods, as BBJ reported.
The deal still needs to gain regulatory approvals and is subject to a Whole Foods shareholders vote. Whole Foods already has a lot of in-store dining and lots of prepared foods.
It's Amazon's zeal to jump into different businesses that helps Daniel DiSano land AWS customers for his company, Axispoint, an AWS partner based in Elmsford, N.Y., and No. 301 on CRN's Solution Provider 500.
Benchmark 10-year Treasuries US10YT=RR were last up 2/32 in price to yield 2.155 percent, compared with 2.162 percent late Thursday.
At first, consumers likely will see Whole Foods products in the AmazonFresh lineup, and just for Prime members.
MSCI's index of stock markets across the world.MIWD00000PUS rose 0.3 percent, while European shares.FTEU3 added 0.6 percent, rebounding from recent losses.