Summary:

• Amazon to takeover Whole Foods with $13.7B bid
• Both stocks rising on the news as investors react positively  
• Deal subject to shareholder approval and expected to close in second half of the year

Tech giant Amazon (AMZN.US) has agreed a price of $42 per share to buy upmarket grocery chain Whole Foods Market (WFM.US) with a bid that represents a 27% premium for the target. Excluding debt the deal is valued at $13.39 billion based on 318.9M diluted shares outstanding as of April 9th. 

 The grocer is expected to continue to operate stores under the Whole Foods Market brand, the companies have said. John Mackey will continue as CEO of Whole Foods and the company’s headquarters will remain in Austin, Texas. 

Stock in both firms is rising as shareholders are seemingly reacting positively to the news. Amazon is up by around 3.5% and Whole Foods has moved just above $42. Amazon’s rise has seen the stock move back close to its record peak of 1013 seen last week before a steep decline on the Friday. Amazon has been in a strong uptrend for many months now and is one of the largest stocks on the US100 which is still lower on the day despite the increase. 

 Amazon has risen strongly since the US election last November to an all-time high at 1013. News of the takeover has seen a rise of more than 3% to trade back close to this record peak