Amazon has announced that it will buy Whole Foods in a deal for $13.7 billion. This make it one of the biggest deals made. Before this the biggest deal was $970 million for Twitch Interactive Inc. in 2014. This step marks an huge push on Amazon’s part to expand in the grocery business. Amazon has been head-to-head with major retailer Walmart as the company tries to create its presence in the e-commerce field.
Whole Foods had been recently feeling pressure from investors over sluggish stock prices. The company has had a few changes over their own in the last last month including replacing five directors, naming a new chairwoman and hiring a new chief financial officer. It also announced plans to improve operations in order to cut costs.
While Amazon is a successful e-commerce giant, it’s hoping to test a few retail concepts. The deal states Amazon would pay $42 a share for Whole Foods. After the deal was announced Friday morning, shares of Amazon rose as much as 3.3 percent while other major retailers, including Target, Walmart and Costco fell.
No word has been released on how Amazon will integrate its technology (if at all) with the grocery stores.