(Whole Foods Market)

Amazon is buying Whole Foods in $13.7B deal

The deal is targeted to close in the second half of the year

Online juggernaut Amazon is buying Whole Foods in a deal valued at about $13.7 billion, a strong move to expand its growing reach into groceries.

Amazon.com Inc. will pay $42 per share for Whole Foods Market Inc., including debt. That marks an 18 per cent premium to Whole Foods’ closing price on Thursday.

The deal comes a month after Whole Foods announced a board shake-up and cost-cutting plan amid falling sales. The grocery store operator was also under pressure from activist investor Jana Partners.

The grocery chain, known for its organic options, had been facing increased pressure from rivals, including European grocery chain Lidl, which is planning to enter the East Coast market, along with Aldi and Trader Joe’s.

Amazon, meanwhile, has been expanding its reach in goods, services, and entertainment.

Whole Foods will keep operating stores under its name and John Mackey will as CEO, with headquarters in Austin, Texas.

The company, founded in 1978, has struggled to differentiate itself as competitors also now offer a plethora of fresh and organic foods, and has said customers may be choosing “good enough” alternatives closer to home. In addition to other natural and organic grocers, it has cited pressure from restaurant chains, meal-delivery companies and traditional supermarkets such as Kroger.

The deal is expected to close in the second half of 2017.

The Associated Press

Just Posted

On Education: The safest generation ever

Children being deprived of valuable safety lessons.

#MeToo at work: Employers play a role in fixing culture of harassment

B.C. workplaces are getting ahead of being the next MeToo debacle, calling on experts to train staff

MacDuff: Under a towel on Christmas morning

Warm wishes from our home to yours.

Sagmoen neighbours recall alleged hammer attack

Woman was screaming outside Maple Ridge townhouse in 2013

UPDATED: Train collides with car in Maple Ridge

Mother and child both uninjured, track cleared at 11 a.m.

Learning the spirit of giving

Santa Train roll through Maple Ridge and Pitt Meadows again on Saturday

B.C. woman brain injured in crash as a baby gets $1.1 million in damages

Trial heard the woman was 16 months old, being carried by her mother when they were both hit

Court denies WestJet’s bid to toss out discrimination lawsuit of former worker

Mandalena Lewis is suing WestJet over allegations of gender-based discrimination

VIDEO: 3 months later, rescued sea lion released back into ocean

The young animal was found in Campbell River three months ago

Accused B.C. drug smuggler to be extradited

Supreme Court of Canada upholds extradition order for accused Shuswap drug smuggler, Colin Martin

One convicted, two cleared in 2014 deaths of men in B.C.’s Cariboo

Andrew Jongbloets convicted of manslaughter in deaths of Matthew Hennigar, 23 and Kalvin Andy, 22

VIDEO: Pedestrian struck by vehicle caught on security camera

Incident points to danger on the roads not only in low light but also in bright sunshine

Firefighter dies, thousands more take on California blaze

This is second death linked to the Thomas fire, northwest of Los Angeles

AHUS patient Shantee Anaquod is home for Christmas

Less than a month after receiving first dose of $750K drug, 23 year old healthy enough to go home

Most Read