Amazon $13.7 billion acquisition of Whole Foods Market

Overview:

• Amazon.com has announced an attempted acquisition of US retailer Whole Foods Market for $13.7 billion.
• The deal will see Amazon pay $42 a share in an all cash purchase. Co-founder John Mackey will continue to run the business.
• Whole Foods Market is a US food retailer focused on organic produce that has 456 stores across the US.
• According to Bloomberg, the deal comes in the wake of moves by investor Jana Partners to undertake a buyout. It suggests that other rival bids are likely.
• The move is seen as an attempt by Amazon to get a foot in the door of the food retail sector (which is valued at $700 billion) without having to invest in a network of its own stores. The deal will also give it access to data on consumer habits relating to food and drink purchases.
• Amazon's previous biggest acquisition was that of video game website Twitch Interactive for $970 million  in 2014.
• Goldman Sachs and Bank of America Merrill Lynch are providing bridge financing for the acquisition.
• Evercore is acting as financial adviser to Whole Foods Market.

Sam Duke - Editor