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Published: Thu, June 29, 2017
Economy | By Melissa Porter

Amazon-Whole Foods Marriage Could Disrupt Grocery Business (NASDAQ:AMZN)

Amazon-Whole Foods Marriage Could Disrupt Grocery Business (NASDAQ:AMZN)

Shares of dozens of supermarkets, food producers, payment processors and shopping malls collectively lost at least $35 billion in US market value on Friday as the news reverberated across financial markets. The online retailer will pay $42 per share in an all-cash transaction that also includes the supermarket's debt.

Amazon could cut costs if the technology gets good enough to deploy at Whole Foods locations.

Amazon said that it won't change the Whole Foods Market brand and stores will continue to operate under the same brand name.

The deal also allows Whole Foods co-founder and CEO John Mackey to remain as head of the company he started.

Not anymore. In one fell swoop, Amazon founder Jeff Bezos has bought his way into the supermarket business with the $13.7 billion acquisition of Whole Foods. "Whole Foods Market has been satisfying, delighting and nourishing customers for almost four decades".

"I'm a little concerned that the culture might change, the Whole Foods culture, but I'm kind of excited to see what Amazon's going to do with the brand", Hiddeman said.

It's the biggest acquisition in Amazon's history. (NASDAQ:AMZN) "a launching pad not just for food but possibly drugs as well where customers aren't willing to wait even a day".

Amazon's deal to buy Whole Foods comes as Wal-Mart is engaged in a price war with rivals such as Aldi and Kroger in the grocery segment, which makes up about 56 percent of Wal-Mart's revenue.

"Our customers are looking for shopping experiences that provide everyday low pricing and a mix of physical and digital channels that work best for their needs".

"We are always concerned when there is some loss of brick-and-mortar stores out there", Mullins said after just hearing of the news early Friday.

Investors like the deal and think it will be good for the online retail giant, which has been expanding its grocery offerings.

Seattle-based natural foods co-op PCC Natural Markets has competed with both Whole Foods and Amazon for years and held its own, said Cate Hardy, PCC's CEO. Bank of America Corp also provided financing to Amazon, while Evercore Partners Inc advised Whole Foods.

He sells hunting gear online and says Amazon pushes businesses to slash prices, so he's not making enough money to grow his company. The other sections, not to demarcate them, are most likely pissed for not having access to the organic and natural products.

In contrast, Amazon shares gained 2.4 percent and Whole Foods went up 29.1 percent on the S&P 500.

Almost $1.5T: Amount spent by Americans on food in a year.

The deal comes after Seattle-based Amazon spent almost a decade trying to find a way into the fresh-food delivery business through various endeavors, without much success.

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