(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

Suzuki: Large dams fail on climate change, Indigenous rights

In Canada large hydro projects have been pushed through despite opposition and concerns

Kelowna and Lake Country popular stories from the week

The Capital News and Calendar highlight popular stories every Saturday afternoon

Cook kicks off byelection campaign in West Kelowna

The campaign office will be open seven days a week in the Westbank Shopping Centre

Kelowna students complete D.A.R.E. program

Students at Heritage Christian School received their certificates Friday

Dual-credit film program approved for Central Okanagan students

The Central Okanagan Public Schools is developing a program with the Vancouver Film School

Disappointing turnout for Kelowna women’s march

The Kelowna Women’s March on Washington was held Saturday, Jan. 20

Rockets take down Royals

Kole Lind has four points and Jack Cowell scores twice as Rockets rebound from 7-2 loss at Seattle

Letter: Deer not Kelowna’s biggest problem

Kelowna letter-writer says there is more important issues that deer in the city

VIDEO: Thousands join women’s march events across B.C.

Today marks one year since the first Women’s March on Washington

Two Canadians, two Americans abducted in Nigeria are freed

Kidnapping for ransom is common in Nigeria, especially on the Kaduna to Abuja highway

Are you ready for some wrestling? WWE’s ‘Raw’ marks 25 years

WWE flagship show is set to mark its 25th anniversary on Monday

B.C. woman who forged husband’s will gets house arrest

Princeton Judge says Odelle Simmons did not benefit from her crime

Liberals’ 2-year infrastructure plan set to take 5: documents

Government says 793 projects totalling $1.8 billion in federal funds have been granted extensions

Workers shouldn’t be used as ‘pawns’ in minimum wage fight: Wynne

Comments from Kathleen Wynne after demonstrators rallied outside Tim Hortons locations across Canada

Most Read