The U. S. Federal Trade Commission is allowing Amazon to move forward in the process of purchasing Whole Foods. The $13.7 billion acquisition, which was..
The U. S. Federal Trade Commission is allowing Amazon to move forward in the process of purchasing Whole Foods.
The $13.7 billion acquisition, which was announced in June, combines the e-commerce behemoth with a major grocery chain. The FTC has since been investigating whether the tie-up would decrease competition, ultimately deciding it needn’ t pursue the matter further.
Whole Foods shareholders have also now approved the purchase. It was a good deal for them because Amazon paid a 27% premium on the stock price.
There has been a lot of speculation about why Amazon is buying Whole Foods, but the company has been ramping up its grocery delivery business called AmazonFresh. The combination of efforts will likely create synergies in the food delivery process.
While this FTC investigation could have potentially been a roadblock, the deal is not yet finalized. It is expected to close by the end of the year.
