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Published: Fri, August 25, 2017
Economy | By Melissa Porter

Whole Foods To See Lower Prices As Amazon Finalizes Grocery Chain's Takeover

Whole Foods To See Lower Prices As Amazon Finalizes Grocery Chain's Takeover

Inc. said on Thursday it plans to complete its $13.7 billion acquisition of Whole Foods Market Inc on Monday after winning antitrust approval from USA regulators on Wednesday.

Wal-Mart Stores and other food retailers took a hit on Thursday (Aug 24), dragging United States stocks lower, after Amazon vowed to cut prices at its Whole Foods Market acquisition.

The approval came on Wednesday - the same day shareholders of the Whole Foods chain approved the $13.7 billion deal that would make Amazon a bigger player in the grocery business. And third, you'll be able to pick up Amazon packages through their locker systems at Whole Foods markets.

Shares of Kroger closed 8.1 percent lower, Wal-Mart lost 2 percent, Target fell nearly 4 percent, Costco declined 5 percent, and Supervalu and Sprouts Farmers Markets each dropped more than 6.5 percent.

"Whole Foods Market's healthy and high-quality private label products - including 365 Everyday Value, Whole Foods Market, Whole Paws and Whole Catch - will be available through Amazon.com, AmazonFresh, Prime Pantry and Prime Now", the companies said. Its shares were down 0.6 percent to $952.45 on Thursday.

Consumer advocates worry that Amazon could leverage its robust supply chain and soon-to-be acquisition of more than 465 Whole Foods stores to dominate the burgeoning home grocery delivery industry. Organic staples including apples, brown eggs, salmon and avocados are on Monday's list, with more to follow.

As part of the deal, Amazon will pay Whole Foods shareholders $42 for each share they own.

Amazon says it does not plan to lay off any Whole Foods employees or implement any Amazon Go technology into stores-which will continue to operate under the Whole Foods name.

The Federal Trade Commission has decided that Amazon's plan to swallow up Whole Foods is fine by them. As Whole Foods grew, more supermarkets offered similar organic and natural foods, but at cheaper prices. Supervalu Inc. shares SVU, -6.14% slid 6.4%.

By buying Whole Foods, Amazon is taking a bold step into brick-and-mortar, with more than 460 stores and potentially very lucrative data about how shoppers behave offline.

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