Amazon To Buy Whole Foods Market For $13.4 Bln

(RTTNews) - Amazon (AMZN) Friday said it has agreed to buy grocery chain Whole Foods Market Inc. (WFM) for $13.4 billion, as the online retailing giant aims to dominate supermarket industry as well.

Amazon will acquire Whole Foods for $42 per share in an all-cash transaction, including Whole Foods Market's net debt, the company said.

"Millions of people love Whole Foods Market because they offer the best natural and organic foods, and they make it fun to eat healthy," said Jeff Bezos, Amazon founder and CEO. "Whole Foods Market has been satisfying, delighting and nourishing customers for nearly four decades - they're doing an amazing job and we want that to continue."

Whole Foods Market will continue to operate stores under the Whole Foods Market brand and source from trusted vendors and partners around the world. John Mackey will remain as CEO of Whole Foods Market and Whole Foods Market's headquarters will stay in Austin, Texas.

Completion of the transaction is subject to approval by Whole Foods Market's shareholders, regulatory approvals and other customary closing conditions. The deal is expected to close during the second half of 2017.

Recently, Whole Foods has been trying to fend off pressure from activist investor Jana Partners, which owns about 9% stake in the company, to overhaul the company's operations and to sell of the company. Whole Foods last month had made massive changes to its board, replacing five directors and naming a new chairwoman.

Whole Foods CEO John Mackey had called Jana Partners "greedy bastards" in an interview with Texas Monthly.

"They're greedy bastards, and they're putting a bunch of propaganda out there, trying to destroy my reputation and the reputation of Whole Foods, because it's in their self-interest to do so," he told Texas Monthly.