Amazon is buying Whole Foods Market in earth-shaking, $13.7-billion deal – Los Angeles Times

Dropping a bombshell on the U.S. grocery industry, online shopping giant Amazon.com Inc. said Friday it has agreed to buy Whole Foods Market Inc. for $13.7 billion in cash.

The deal’s announcement instantly sparked a selloff in the stocks of other major U.S. supermarket and big-box chains on expectations that Amazon would bring its low-price expertise and technology prowess to bear with Whole Foods, putting further downward pressure on prices in the already hyper-competitive, $611-billion U.S. grocery industry.

“This is an earthquake rattling through the grocery sector,” Bankrate.com senior economic analyst Mark Hamrick said in a note to clients.

“We can only imagine the technology innovation that Amazon will bring to the purchasing experience for the consumer,” he said.

Amazon is buying Whole Foods Market in earth-shaking, $13.7-billion deal – Los Angeles Times