Amazon is paying $13.7 billion for Whole Foods Market

Amazon is paying $13.7 billion for Whole Foods MarketAmazon said it would buy Grocery Whole Foods Market for $13.7 billion.

In a move that gives online retailers to distribute fresh food and other products to consumer.

For Amazon, this deal makes an ambitious push into a huge grocery business, an industry that has a business of about $ 700 to $ 800 billion in annual sales in the United States.

Amazon is also raise competition with Wal-Mart,

which is struggling to catch online chariots.

Amazon, which is known for squeezing suppliers and is experimenting with its own outlets,

will become a natural and organic grocer with 456 stores and high end shopkeepers,

but the prices will reinforce and integrate technology Is struggling to

For whole foods, the deal shows a disappointed worker with a slack stock price to overcome the pressure of investors.

Whole Foods unveiled a comprehensive overhaul of its board last month, replacing five directors, in the name of a new chairman and bringing a new chief financial officer

It has also planned to improve the cost of operation and deduction.

This agreement sent the attacks in the food distribution market and beyond.

Grosar Kroger Cop’s shares fell 11 percent, while Wal-Mart stores impossed 5%, Amazon increased the price cut and the mix of product of whole foods, turning it into a very broad retailer, fearing Indicated

Amazon’s stock was up 3% in $ 993.40, which was more than $ 14 billion in its market capitalization.

The deal is $13.4 billion in cash and the rest is in debt.

Acquisition value means more than 12 months of value-to-earnings for whole food for 31 months, and 14.4 for the S & P 500 food retail index compared to the same.

Amazon and Whole Foods expect to close this deal during the second half of 2017.

Source: reuters.com

varun kumar

VARUN KUMAR is the Owner, Chief Editor and Co-Founder of “On Breaking”. He loves to stay updated always with all the latest changes that are happening each and every day in our world. He has special interests in Entertainment, Sports, Weird and Technology. He has a very deep interest in all Current Affairs topics whatsoever.

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