(Whole Foods Market)

Amazon is buying Whole Foods in $13.7B deal

The deal is targeted to close in the second half of the year

Online juggernaut Amazon is buying Whole Foods in a deal valued at about $13.7 billion, a strong move to expand its growing reach into groceries.

Amazon.com Inc. will pay $42 per share for Whole Foods Market Inc., including debt. That marks an 18 per cent premium to Whole Foods’ closing price on Thursday.

The deal comes a month after Whole Foods announced a board shake-up and cost-cutting plan amid falling sales. The grocery store operator was also under pressure from activist investor Jana Partners.

The grocery chain, known for its organic options, had been facing increased pressure from rivals, including European grocery chain Lidl, which is planning to enter the East Coast market, along with Aldi and Trader Joe’s.

Amazon, meanwhile, has been expanding its reach in goods, services, and entertainment.

Whole Foods will keep operating stores under its name and John Mackey will as CEO, with headquarters in Austin, Texas.

The company, founded in 1978, has struggled to differentiate itself as competitors also now offer a plethora of fresh and organic foods, and has said customers may be choosing “good enough” alternatives closer to home. In addition to other natural and organic grocers, it has cited pressure from restaurant chains, meal-delivery companies and traditional supermarkets such as Kroger.

The deal is expected to close in the second half of 2017.

The Associated Press

Just Posted

VIDEO: NIC officially opens new Thunderbird Mall Campus

“The community is really eager to see our new space.”

Survey says: Port Hardy Fire Rescue deserves on-call pay

75 per cent of those surveyed were in favour of financial compensation for the fire department.

VIDEO: Incredible waves spotted at Cape Scott

Lighthouse keeper captures video of huricane force winds

Tyson’s Thoughts: Make Port Hardy great again with a new multiplex in 2018

Population growth means there should be more recreational activities for community members to enjoy.

VIDEO: Stormy weather at Storey’s Beach

Envirnoment Canada has issued a wind warning for Coastal British Columbia

WATCH: Giant waves smash Ucluelet’s Amphitrite Point

Folks made their way to Ucluelet’s Amphitrite Point Lighthouse on Thursday, Jan.… Continue reading

World’s fastest log car made in B.C. sells for $350,000 US

Cedar Rocket auctioned off three times at Barrett-Jackson Co., netting $350,000 US for veterans

Bad timing: Shutdown spoils Trump’s one-year festivities

Trump spends day trying to hash out a deal with Senate Minority Leader Chuck Schumer

RCMP nail sex toy thief

Shop owner plays a role in arrest

Ice-cream-eating bear draws controversy

An Alberta Wildlife Park posted a video this week of one of their bears going through a Dairy Queen drive-through

Fernie, RCMP go to court over city log books in fatal ammonia leak probe

Log books center stage in clashing of investigations between the city and RCMP

Renowned Comox Valley sasquatch researcher passes away

A renowned biologist and leading Canadian sasquatch researcher who called the Comox… Continue reading

B.C.’s biggest pot plant planned for Oliver

Co-founder Tony Holler said the 700,000 sq. ft. facility would produce 100,000 kg of pot per year

Train derails in Northwest B.C.

CN reports no injuries or dangerous goods involved after coal train derailment.

Most Read