Amazon will pay $42 US a share or $13.7 billion in cash for Whole Foods’ shares, a 27 per cent premium to what Whole Foods was worth on Thursday.
Amazon’s own shares gained $23.54 US in reaction to the news on Friday to close at $987.71 US on Nasdaq.
Whole Foods shares closed at $42.68 US on Friday — just above the offer price, which suggests some investors think a better offer from someone else could be coming. The grocer must pay a $400 million US break fee if the deal falls apart.
The company recently rolled out a few locations of something called Amazon Go, which is essentially a small grocery store with no cashiers.
The 7th edition of Canada’s Food Price Report is published for the first time by Dalhousie University. 2016 marked Canada’s lowest monthly average exchange rate in almost a decade. Food price decreases at retail were both surprising and unexpected. Due to a lower Canadian dollar, vegetable prices soared early in the year which prompted Canadians to become more conscious about food prices in general.1 In many ways 2016 was a difficult year to predict as weather patterns, the devalued Canadian dollar, a surplus of agricultural and food stocks, and volatile oil prices drove up food prices.