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
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