(Whole Foods Market)

Amazon is buying Whole Foods in $13.7B deal

The deal is targeted to close in the second half of the year

Online juggernaut Amazon is buying Whole Foods in a deal valued at about $13.7 billion, a strong move to expand its growing reach into groceries.

Amazon.com Inc. will pay $42 per share for Whole Foods Market Inc., including debt. That marks an 18 per cent premium to Whole Foods’ closing price on Thursday.

The deal comes a month after Whole Foods announced a board shake-up and cost-cutting plan amid falling sales. The grocery store operator was also under pressure from activist investor Jana Partners.

The grocery chain, known for its organic options, had been facing increased pressure from rivals, including European grocery chain Lidl, which is planning to enter the East Coast market, along with Aldi and Trader Joe’s.

Amazon, meanwhile, has been expanding its reach in goods, services, and entertainment.

Whole Foods will keep operating stores under its name and John Mackey will as CEO, with headquarters in Austin, Texas.

The company, founded in 1978, has struggled to differentiate itself as competitors also now offer a plethora of fresh and organic foods, and has said customers may be choosing “good enough” alternatives closer to home. In addition to other natural and organic grocers, it has cited pressure from restaurant chains, meal-delivery companies and traditional supermarkets such as Kroger.

The deal is expected to close in the second half of 2017.

The Associated Press

Just Posted

College buys a yurt to boost student success

Round tent-like structure part of college instructional shift

Soup kitchen sees “groundswell of community support”

Donations toward looming tax bill push non-profit back in the black

Terrace husband and wife honoured for saving each other’s lives

BC Ambulance presented each a Vital Link Award for separate incidents of CPR

Council supports lobby for fair share of cannabis tax revenue

The City of Terrace is throwing its support behind a West Kelowna… Continue reading

Airport registers modest passenger increase

Manager anticipates further growth in 2018 as expansion project nears completion

Airport registers modest passenger increase

Manager anticipates further growth in 2018 as expansion project nears completion

WestJet appeals lost bid to scrap harassment lawsuit

Airline argues judge was wrong to have dismissed the company’s application to strike the legal action

Can U.S. border guards search your phone? Yes, and here’s how

Secretary of homeland security explains a new policy that let’s border guards check phones

‘Beautiful writer’ Nancy Richler dies of cancer in Vancouver hospital

Montreal-born author spent most of her adult life in B.C. as a fiction writer and novelist

B.C. commuters vote to rename bus service to ‘Jeff’

The company asked and the people of Facebook answered

Students frustrated by UBCO response to harassment allegations

Students on the Kelowna campus were unaware of resources and worried about lack of communication

Opinion: Dare to be smarter

Just say no works for more than just substance abuse

‘Sing Me a Song’ about B.C. for a chance at $1,000 contest prize

Entries due by March 30 for lieutenant-governor’s British Columbia-themed competition

Facing reality of death, B.C. man learns real meaning of life

Even while preparing for the end, something inside Keven Drews won’t let him stop living

Most Read