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

In food retail Amazon has found one moat that it can’t simply leap over

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".

Related News:

  • Van driver deliberately ploughed into worshippers in London: Muslim Council of Britain

    Someone in the crowd is heard yelling, "No-one touch him!" She is now scheduled to chair an emergency response meeting on Monday. Numerous victims are believed to have just finished worshipping at the Finsbury Park mosque after breaking the Ramadan fast.

    Ben Carson breaks with Trump administration on special counsel, Russian Federation investigation

    The Twitter attacks came as Vice President Mike Pence hired a personal lawyer to represent him in the intensifying investigation. And, short of firing Mueller - which would be political suicide for Trump - he just has to wait and see how it plays out.

    Ronaldo at his best, but Portugal held

    However, the first match on the second day could be one of the best of the group stage as Portugal face Mexico . A defensive error allowed Carlos Vela to get on the ball, and his hooked cross was headed in.
  • Investigation Is "Witch Hunt"

    The Twitter attacks came as Vice President Mike Pence hired a personal lawyer to represent him in the intensifying investigation. Comey testified that initial explanations that he was sacked because of poor leadership were "lies, plain and simple".
    ACCC Begins Recruiting For Broadband Test

    ACCC Begins Recruiting For Broadband Test

    The ACCC is now investigating whether ISPs could have misled customers on their actual broadband speeds. The ACCC went to tender on May 30 for an independent testing provider for the program.

    Mueller Has 'Not Yet' Decided to Investigate Trump

    Angus King, an independent from ME , stressed that the probe will likely last for a long time . Craig, who led the legal team defending President Bill Clinton against impeachment charges.
  • Brooks Koepka wins US Open title at Erin Hills

    While 18 was there for the taking for other players, he finished both Round 3 and Round 4 with a bogey on the final hole. Stricker was rolling down the back end of the back nine, with three birdies between the 14th and 17th holes.

    United Kingdom election: Theresa May could lose parliamentary majority, exit poll shows

    While the party backed Britain's exit from the European Union , it has pushed back in the past against a "hard Brexit". The party has called for a second vote on whether Scotland should separate from the United Kingdom.
    Four people missing after flooding in remote Greenland village

    Four people missing after flooding in remote Greenland village

    The relatively-small magnitude 4 quake was still enough to trigger a surge of water which destroyed several homes. Recent reports say the four people missing were inside their home in Nuugaatsiaq when the waves struck.
  • UK official: Fire building materials broke rules

    He says it may be necessary for numerous outmoded tower blocks built in the 1970s to be demolished because of safety concerns. Police also said that the number of people missing and assumed dead had risen from the previously official toll of 58.

    Taliban storm Afghan police compound; 1 police dead

    Sseven US servicemen were wounded and one Afghan soldier was killed in an insider shooting at a base in northern Afghanistan. John Nicholson, the US commander in Afghanistan, to deploy betweeen 3,000 and 5,000 additional forces to the country.

    Harry Kane: 'I want to be England captain full time'

    The turnaround sent shockwaves throughout England's fanbase as they faced their first World Cup qualification group defeat. They were like a heavyweight boxer and we were middleweight, which we expected. " Scotland is no easy place to come".


Most liked

CMT Awards Feature Stars From All Genres, Hollywood
Perhaps Ashton Kutcher brought the Nashville Predators some luck with his stunt during Wednesday's CMT Awards . Additionally, the Brothers Osborne and Peter Frampton will perform together for the first time ever.

Check fire safety at all flats in Ireland, says housing chief
Asked on Newsnight whether she had misjudged the public mood over the tragedy, she said: "This was a bad tragedy that took place". British Prime Minister Theresa May will meet with survivors of the London high-rise fire at her Downing Street office.

Drax Group Plc (DRX) Given Overweight Rating at Barclays PLC
After $-0.19 actual EPS reported by HollyFrontier Corp for the previous quarter, Wall Street now forecasts -463.16% EPS growth. Shore Capital reaffirmed a "buy" rating on shares of Crest Nicholson Holdings PLC in a research report on Tuesday, May 16th.

Casualties reported after another vehicle strikes a London crowd outside of mosque
DAC Basu added: The attack unfolded whilst a man was receiving first aid from the public at the scene. The 48-year-old man suspected of being the van driver was arrested on suspicion of attempted murder.

Trump still tweets 'Witch Hunt' but attorney says president isn't under investigation
Rep. (D-Calif.), the top Democrat on the House Intelligence Committee, that Congress would "unite to stop [Trump] if he tried to fire the two men".

Gingrich on Trump's WH Bid: 'Lot More Fun Than a Yacht'
Attorney Patrick Fitzgerald to investigate the unauthorized disclosure of the identity of a Central Intelligence Agency employee. Gingrich said that as president, Trump was well within his authority to fire the head of the Federal Bureau of Investigation .

Celtics to trade No. 1 Pick to 76ers
Fultz led the Pac-12 in scoring and finished No. 6 among all Division I players, and was the top freshman scorer in the country . When I saw that I thought it was pretty cool, pretty amusing . "I just wake up and go where they tell me to go", Fultz said.

Antonio Conte Reportedly Could Quit Chelsea over Club's Lack of Transfers
Chelsea's contract negotiations with keeper Thibaut Courtois have stalled with his £100,000 per week deal expiring in two years.

Vehicle hits pedestrians in London, several wounded
On May 22, a suicide bomber killed 22 people at a concert by American pop singer Ariana Grande in Manchester in northern England. The London Ambulance Service tweeted that it had sent "number of resources" to the site after being called in around 12.15 am.

Amazon on collision course with Wal-Mart with Whole Foods deal
Whole Foods' online presence is tiny, estimated at just $100 million, and executed through its web partner grocer Instacart. Also, it may be seeing the last mile as a real prohibition to profitability in multi-temperature goods.

Russia investigation: Attorney General Rosenstein might recuse himself
After Trump fired FBI Director James Comey , Trump said that Comey had told him three times that he was not under investigation. In an attempt to inoculate the Trump administration from criticism over Comey, many top officials have heralded Rosenstein.

Canadian Henderson tames strong winds for fourth LPGA win
Feng is trying to complete a MI sweep after winning the LPGA Volvik Championship three weeks ago in Ann Arbor. In a three-way tie for third at 266 were Su Oh, Madelene Sagstrom and Moriya Jutanugarn .

Baseball practice shooting raises debate over gun control
McAuliffe repeated that he was not there to discuss gun control measures, though he noted he would stand up for the safety of all. There is also no gun registry in Virginia, and there is no such thing as a concealed carry permit for long guns.

Soccer Fans Eagerly Await Start of FIFA Confederations Cup 2017
Chile is ranked fourth, but lacks the same tradition as Portugal and Mexico and has struggled in South American qualifying. The teams drew 0-0 in a friendly in 1969, and in 2014 Portugal won 1-0 in another exhibition match.

Amit Shah:No Chance Of India Pakistan Series At Their Home Grounds
Thackeray, according to party officials, said: "The Shiv Sena will remain with the NDA in the Presidential polls". Other Sena leaders and BJP state President Raosaheb Patil-Danve stayed out of the 75-minute meeting.