Amazon to acquire Whole Foods

SEATTLE — In a blockbuster deal, online giant Amazon is acquiring Whole Foods Market in an all-cash transaction valued at $13.7 billion, or $42 a share.

John Mackey, co-founder and CEO of Whole Foods, will remain CEO of the grocer after the deal closes. Stores will continue to operate under the Whole Foods banner, and the company's headquarters will remain in Austin, Texas.

“This partnership presents an opportunity to maximize value for Whole Foods Market’s shareholders, while at the same time extending our mission and bringing the highest quality, experience, convenience and innovation to our customers,” said Mackey.

The transaction is subject to approval by Whole Foods Market's shareholders, regulatory approvals and other customary closing conditions. The parties expect to close the transaction during the second half of 2017.

Whole Foods has been under increased pressure from investors Jana Partners hedge fund and money management firm Neuberger Berman, who have criticized the chain for its slumping sales.

“Millions of people love Whole Foods Market because they offer the best natural and organic foods, and they make it fun to eat healthy,” said Jeff Bezos, Amazon founder and CEO. “Whole Foods Market has been satisfying, delighting and nourishing customers for nearly four decades — they’re doing an amazing job and we want that to continue.”

This is a developing story. Check back later for more details.