According to an inside source, Amazon considered a takeover of Whole Foods Market last fall. However, the possible bidder didn’t pursue a deal.
Amazon originally thought that Whole Foods would be able to further its push into the grocery business. Bloomberg notes that while Whole Foods’ market valuation of $10.7 million would be “an outsized acquisition” for Amazon, it would indeed turn the company into an instant grocery giant.
After Bloomberg reported this news, shares of Whole Foods jumped as much as 4.3 per cent in early trading.
What’s more, Jana Partners, a Whole Foods investor, has called for Whole Foods to consider a sale. Potential bidders include Amazon, Kroger Co., and Albertsons Cos. Despite Whole Foods’s recent sales slump and heavy competition from other supermarkets, the company is still an attractive asset—even more so if it improves its internal operations.
