Shareholders to Decide Fate of Amazon, Whole Foods Deal
Despite few known details, analysts expect majority approval.
Amazon’s $13.7 billion deal with Whole Foods will be decided by shareholders at the grocer’s Wednesday meeting.
The acquisition, for which analysts are expecting a resounding approval from voters, would launch Amazon more deeply into brick-and-mortar retail. While the online retail titan does have some physical stores, including two AmazonFresh Pickup shops in Seattle, eight bookstores, and a checkout-free Amazon Go store in Seattle, Whole Foods operates 468 stores throughout North America and the UK—a monumental new footprint for Amazon.
While there is little known about Amazon’s master plan for Whole Foods, there have been no arrangements for layoffs or to implement Amazon Go technology with the grocery stores. Whole Foods stores will also continue to operate under the Whole Foods name.
When announced in June, the deal sent shockwaves throughout grocery stocks worldwide and caused shares of Amazon and Whole Foods to jump 2.44% and 29.10%, respectively.
If shareholders approve the plan, the transaction is expected to close later this year.