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Amazon Closes on Buy of Whole Foods

The online giant began implementing lower prices at Whole Foods Market's brick-and-mortar locations on Monday.

By Paul Bubny | paulbubny | Updated on August 28, 2017

Photo of John Mackey Mackey will remain CEO of Whole Foods, now a wholly owned subsidiary of Amazon.

SEATTLE—Amazon’s $13.7-billion acquisition of Whole Foods Market closed on Monday, and the new ownership wasted little time in making its presence felt at the high-end grocery chain. Shoppers at Whole Foods’ brick-and-mortar stores saw markdowns on selected grocery staples, and shares of the retailer’s common stock were converted into the right to receive $42 per share in cash.

News that Amazon would start cutting prices at Whole Foods, with Amazon Prime members due to receive special savings and in-store benefits, rippled beyond the 470 brick and mortar locations that Whole Foods operates in North America and the UK. The Wall Street Journal reported this past Friday that six of the nation’s leading publicly traded food retailers, including Kroger and Wal-Mart, lost a combined $12 billion in value following Amazon’s announcement of its new pricing policies this past Thursday, the day after the online behemoth received Federal Trade Commission approval of its deal for Whole Foods.

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