Amazon-Whole Foods Tie-Up Could Shake Up Canadian Supermarkets

Amazon acquires Whole Foods Market for $13.7bn

The surprise deal shakes up the $800 billion grocery sector - and the broader retail industry itself - by marrying Amazon's vast scale and digital prowess with Whole Foods Market Inc.'s 460 stores and fresh-food distribution network.

Latham & Watkins corporate partners Adel Aslani-Far and Mark Gerstein are representing Evercore Partners in its role as financial adviser to Whole Foods on its proposed sale to Amazon, while Weil Gotshal & Manges banking partners Morgan Bale and Heather Viets, capital markets partner Faiza Rahman, M&A partner Raymond Gietz and tax partner William Horton are acting for Bank of America/Merrill Lynch and Goldman Sachs, both of which are providing bridge financing for the acquisition of the grocery store chain.

The deal will be seen as a further encroachment by Amazon on the United Kingdom grocery sector's turf after its delivery service Amazon Fresh, covering postcodes across London, Surrey and parts of Hampshire, was launched previous year in a tie-up with Morrisons.

Some shoppers worry about the quality of their produce and say they're rather pick their pears themselves.

It might sound dumb, but the reason so many shoppers are starting their product searches on Amazon is because they'd prefer to buy things from Amazon.

"Millions of people love Whole Foods Market because they offer the best natural and organic foods, and they make it fun to eat healthy", said Jeff Bezos, Amazon founder and CEO. "There was a swerve over the last two days about them buying Slack", said Levinsohn.

Amazon agreed to pay $42 a share in cash for the organic-food chain, including debt, a roughly 27 percent premium to the stock price at Thursday's close.

But Amazon's not going away and that will incite change, he said.

"The Whole Foods acquisition is also scary for grocery workers".

With the sheer square footage of your average Whole Foods store, there's no reason why Amazon couldn't take a similar tactic. "Additionally, over the past year, Whole Foods has also pushed their private label offering, especially with the roll out of their spin-off store 365 by Whole Foods".

New competition from Amazon will "exert margin pressure on everybody else and force everybody to be innovative and consolidate", Agnese said.

"But it will put more pressure on other physical supermarket chains, particularly ones that don't have an owner with as deep of pockets as Amazon that can leverage technology, scale, and data on customer preferences", says Lim.

That was feeling of Taylor Malooly, 19, a University of Texas student at Whole Foods in Austin, who said a Whole Foods delivery service would have to be fast if he were to try it. "The Justice Department and Federal Trade Commission must undertake a review that considers not just the merger's impact on prices but also the impact on jobs and wages", said Rep. Ro Khanna, D-Calif., in a statement to Vice.

According to Mergermarket, the bid is not only one of the decade's top grocery deal in the United States, but is also the fourth largest USA deal in the retail subsector. In a sense, the surprising deal is preordained by his mission to construct the everything store: A company that delivers everything to everyone, at the best possible price and within the shortest amount of time. She thinks it's a more reasonably priced service than Amazon provides.

"Instead of deliver to my home, why not just come down here?"

Then there's Amazon Restaurants service, which now delivers prepared meals in a few cities to the homes of Prime members. Stern replaced Roberta Lang, a longserving in-house legal chief at Whole Foods.

"I would have thought it'd be somewhere down the line but who knows".

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