Amazon buying Whole Foods in bold move into brick and mortar

Stocks dip as Amazon-Whole Foods deal hammers grocery stores

Whole Foods purchase gives Amazon 'first step' into Canadian grocery business

In May, under pressure from Jana Partners, Whole Foods replaced five board members and its chief financial officer.

Amazon, Whole Foods executives offered counsel to University of MI understudies.

Whole Foods, which will keep operating stores under its name, said in an email to customers, that it will maintain the same standards under Amazon, including bans on artificial flavors and colors and antibiotics in hens producing its eggs.

John Mackey will continue working as CEO of Whole Foods Market and the company's headquarters will stay in Austin, Texas.

The $42 a share offer from Amazon is a 27 percent premium over Whole Foods closing stock price on Thursday.

"People who used to say Amazon couldn't be profitable because they were just a bookstore might want to think before they suggest Amazon can't make money with Whole Foods because it's just a grocery store", Low said.

The deal, expected to close in the second half of this year, gives Amazon -- which has been experimenting with various physical store concepts to make establish itself as a food purveyor - an instant expanse of 460 high-end stores across the USA, in Canada and in the United Kingdom. He also said that the deal will benefit the customers as it will give them the highest quality of experience, convenience, and innovation to customers.

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"Amazon didn't just buy a grocery retailer".

Yesterday, Amazon stunned everyone when it revealed that it had agreed to buy out Whole Foods Market for a monstrous sum of close to $14 billion.

Last year, it opened Amazon Go, a checkout-free grocery store in Seattle, where customers are charged on their Amazon accounts for the products they leave the store with without ever having to see a cashier or self-checkout system.

Whole Foods' stock soared 29 per cent. Amazon's rose 2.4 per cent. Some of you might already buy some traditional grocery store items on Amazon, and they've previously experimented with an entirely self-serve physical grocery store.

Whole Foods in downtown Miami (Credit: Getty Images).

Whole Grocer, which was founded in 1978, would continue to operate under its existing brand.

The market reverberations of the announced deal traveled beyond the retail industry - shares of food companies like Hershey and Campbell Soup slid, too.

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