Online giant Amazon buying US grocer Whole Foods
Online retail giant Amazon is buying US organic grocer Whole Foods Markets, the companies announced Friday.
The deal is worth some 13.7 billion dollars, or 42 dollars per share of Whole Foods stock.
Whole Foods chief executive John Mackey will remain at the helm of the 460-store chain known for making organic food commonplace across the US.
Whole Foods had come under increasing pressure from an activist investor amid increasing competition in the organic foods sector and concern about the chain's notoriously high prices.
"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," Amazon chief executive Jeff Bezos said in a statement.
Amazon has sought to expand its own presence in groceries - one of the few retail segments where it had not already become a dominant player - through is Amazon Fresh grocery delivery service in select cities.
At the same time, it has made overtures outside its online roots into traditional bricks-and-mortar stores, with experiments with a handful of book stores and convenience stores.
The deal must still be approved by Whole Foods shareholders and regulators, with the deal expected to close later this year. (dpa)
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