News

Actions

Amazon buys Whole Foods in $13.7 billion deal

Amazon buys Whole Foods in $13.7 billion deal
Posted at 9:51 AM, Jun 16, 2017
and last updated 2017-06-16 06:15:15-04

(RNN) - Amazon announced Friday it is purchasing grocery store chain Whole Foods, in a deal valued at around $13.7 billion.

Amazon,com Inc will pay $42 a share for Whole Foods Market Inc., an 18 percent premium to the closing price Thursday, the Associated Press reported.

The companies said grocery stores would still operate under the Whole Foods brand. John Mackey will stay on as CEO of Whole Foods, and corporate headquarters will remain in Austin, TX.

For online retailer Amazon, it's another foray into brick-and-mortar stores - it has opened up eight bookstores across the country within the last two years and plans to add at least five more.

Shares of Amazon rose about 3 percent Friday morning.

The deal is expected to close in the second half of the year.

Copyright 2017 Raycom News Network. All rights reserved.